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Metro Denver and Northern Colorado Key Industry Clusters

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Metro Denver and Northern Colorado Key Industry Clusters
Executive Summary
A community’s economic
A major step in crafting a region’s economic development strategy
development efforts should
focuses on the types of industries to target for expansion and retention.
focus on industries in which
Industry targets are chosen to meet varying community goals ranging
the community has clear
competitive advantages.
from diversifying the economic base, to increasing the average wage, to
utilizing natural and labor resources more fully. A community’s economic
development efforts should focus on industries in which the community
has clear competitive advantages. Further, target industries should be
economically, environmentally, and socially acceptable to the community.
This study is based on the concept of industry clusters, which are geographic
concentrations of interconnected companies and institutions in a particular
field. Where an industry’s employment concentration is greater than the
national economy, it is presumed that the production of goods and services
is more than sufficient to meet local demand, and is therefore exported,
either physically or financially. Where industries are highly concentrated, it is
presumed that a high degree of specialization among firms exists, a feature
of competitive industry clusters, commonly called primary jobs. These
industries drive wealth creation within a region.
Eight major industry clusters in the nine-county Metro Denver and Northern
Colorado region (Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas,
Jefferson, Larimer, and Weld Counties) are key to our economy, making them
primary targets for national recruitment as well as economic development
retention and expansion efforts to develop and expand the region’s industry
cluster base.
This report summarizes key points about each industry cluster, including a
brief description, employment concentration ranking compared to the 50
largest U.S. metropolitan areas, workforce profiles, and other major industry
information. In addition, primary location factors are identified along with a
brief assessment of the region’s competitive position and future viability in
attracting additional employment in each industry cluster.
Eight major industry clusters drive the
regional economy
•
AEROSPACE – The nine-county region ranks first in private-sector aerospace
employment concentration out of the 50 largest metropolitan areas, with 19,560
workers. Colorado ranks as the third-largest space economy in the United States in
2014, behind California and Florida.
•
AVIATION – Denver International Airport (DIA) is a major economic engine for the
region’s aviation industry, which employs 16,350 workers. Positive job expansion in the
region, with one-year growth of 2.3 percent compared with a -0.4 percent contraction
nationally, major expansion at DIA, and the start of a new, nonstop flight to Panama in
2014 created further momentum in the industry.
•
BIOSCIENCE – More than 15,120 employees work at 600 bioscience companies in the
nine-county region. The medical devices and diagnostics subcluster grew 1.9 percent
in 2014 compared with 0.7 percent nationally. Research universities and numerous
innovation assets support the industry, as well as opportunities to bring together
academic, research, and bioscience companies at the 578-acre Fitzsimons Life Science
District and the adjacent Anschutz Medical Campus in Aurora.
•
BROADCASTING & TELECOMMUNICATIONS – With 42,810 broadcasting and
telecommunications workers, the nine-county region has the fifth-highest employment
concentration out of the 50 largest metropolitan areas. The region is the largest in the
United States to offer one-bounce satellite uplinks due to its unique geographic location
in the Mountain time zone.
•
ENERGY – The inter-relationship between fossil fuels and cleantech provides unique
growth opportunities for this industry that employs 50,260 people at 3,020 companies
in the region. The area ranks fourth for fossil fuels and fifth in cleantech employment
concentration among the 50 largest metropolitan areas.
•
FINANCIAL SERVICES – The nine-county region is one of the few areas outside of the
Northeast with a significant financial industry in three key market segments: banking
and finance, investments, and insurance. Various associations and service firms support
the region’s diverse financial services base of 13,360 companies and 94,820 employees.
Employment growth in the investments subcluster in 2014 was 4.2 percent compared
with 1.3 percent nationally.
•
HEALTHCARE & WELLNESS – With more than 192,290 healthcare and wellness workers
at 18,160 companies across the region, healthcare and wellness is one of the region’s
fastest growing industry clusters and is a substantial contributor to the region’s overall
economic productivity. Employment growth in the industry was 4.9 percent in 2014
compared with 1.6 percent nationally.
•
INFORMATION TECHNOLOGY–SOFTWARE – Colorado ranked third in the nation (for
the sixth-consecutive year) for high-tech workers per capita, according to TechAmerica
Foundation’s Cyberstates 2013 report. A strong entrepreneurial spirit fuels this industry,
employing 46,470 workers at 4,530 companies throughout the nine-county region.
Factors driving company location and expansion decisions
Location decisions are driven by a number of factors as companies within each
of these industries examine communities in which to locate or expand. Some
factors are industry specific. For example, proximity to military customers and
prime contractors is important in aerospace company location decisions whereas
fossil energy companies focus on access to natural resources. Other key locational
factors cut across numerous industries, focusing on broader community attributes.
While the combination of factors that enhance company success varies by industry,
there are several common themes:
• The ability to recruit and retain technical and scientific talent.
• Affordable business operating costs.
• Favorable tax policies and pro-business state and local governments.
• A culture of innovation and entrepreneurism.
• Proximity to quality colleges, research universities, and federal laboratories.
• Efficient access to an international airport.
• An overall better quality of life.
Competitive positioning to create jobs and investment
• The ability to recruit and retain technical and scientific talent – Of Colorado’s
adult population, nearly 38 percent has a bachelor’s or higher-level degree,
making Colorado the second-most highly educated state in the nation behind
Massachusetts. (U.S. Census Bureau; 2013 American Community Survey)
• Affordable business operating costs – Colorado ranks No. 1 for labor supply and
fifth overall on Forbes’ 2014 “Best States for Business and Careers” list. Rankings
This study is based on
the concept of industry
clusters, which are
geographic concentrations
of interconnected companies
and institutions in a
particular field.
are based on each state’s business costs and regulations, economy, labor supply,
growth prospects, and quality of life. (Forbes, 2014)
• Favorable tax policies and pro-business state and local governments –
Legislation passed in 2008 simplified Colorado’s corporate tax structure by
establishing a single sales factor for multistate corporations. Single factor
apportionment allows companies to pay taxes based solely on their sales in the
state. Colorado’s corporate income tax rate of 4.63 percent is one of the lowest in
the nation. (State of Colorado; The Tax Foundation)
• A culture of innovation and entrepreneurism – The first U.S. Patent and
Trademark (USPTO) satellite office west of the Mississippi opened in Denver in
June 2014. The office will house 20 patent judges to handle appeals and add 120
jobs in the first year of operation. The new location is expected to generate an
economic impact of $440 million in the first five years. The USPTO chose Denver
because the region has one of the highest per capita rates of people with science
and technology degrees, has relatively low living costs, and is a prime location in
which to recruit and retain the most talented workers.
(U.S. Patent and Trademark Office, Metro Denver Economic Development Corp.)
• Proximity to quality colleges, research universities, and federal laboratories –
Colorado is a national leader for producing scientific and engineering talent, ranking
among the top 10 states for science and engineering graduate students per 1,000
individuals ages 25 to 34 years old in 2011, in addition to ranking fourth in the number
of scientists and engineers as a percent of the workforce in 2012. Colorado also has
one of the highest concentrations of federally funded science and research laboratories
in the nation. (National Science Foundation, 2014; CO-LABS, 2014)
• Efficient access to an international airport – Denver International Airport is the
fifth-busiest airport in the nation and is 15th-busiest worldwide for passenger traffic.
Denver’s central U.S. location allows travelers efficient access to both coasts, and new
service to Asia through Tokyo’s Narita Airport, as well as nonstop service to Panama
broadens the region’s global reach. (U.S. Bureau of Transportation Statistics, 2014;
Airport Council International; Denver International Airport, 2014)
• An overall better quality of life – The Denver-Aurora-Broomfield MSA ranked No. 2
in the country for attracting college-educated workers from 2007-2012. In addition,
Colorado was the third-fastest growing state in 2013, up from sixth in 2012.
(U.S. Census Bureau, 2014; Toward a More Competitive Colorado, 2014)
Marketing industries to promote regional job growth
Successful companies rely on market research to guide their marketing efforts, and economic
development is no different. Armed with in-depth data on the industries showing the most
promising job growth over the long term, the Metro Denver EDC has a business plan to guide
its job creation efforts. This industry data helps determine: which legislation will be conducive
or detrimental to industry, what opportunities exist to reach industry decision makers and
site selection consultants, where might a supplier recruitment strategy come into play, and
most importantly, which factors are vital to companies analyzing a community for location or
expansion.
Over the past five years, industry clusters and subclusters such as medical devices and
diagnostics, fossil fuels, cleantech, investments, healthcare & wellness, and IT-Software have
posted employment growth of more than 5 percent. This report shows that Metro Denver’s
leading industries are among the top performing in the nation, with six clusters/subclusters
ranking in the top 10 for employment concentration among the nation’s 50 largest metropolitan
areas.
For additional information on Metro Denver’s major industry clusters, please contact
303.620.8092, info@metrodenver.org, or the industries section on www.metrodenver.org.
Published January 2015
U.S. data in ( )
Metro Denver Industries Employment Snapshot
Metro Denver Industries
Aerospace
Aviation
Bioscience
Broadcasting &
Financial
Healthcare
Telecommunications
EnergyServices& Wellness
IT-Software
Medical Pharmaceuticals
Fossil Fuels Cleantech
Devices &
& Biotechnology
Diagnostics
Direct Employment
Companies
19,560
120
16,350
570
Banking &
Finance
Investments
Insurance
10,500
310
4,620
290
42,810
2,490
30,340
1,510
19,920
1,510
38,970
3,150
24,370
6,770
31,480
3,440
192,290
18,160
46,470
4,530
Five-Year -3.2%
1.6%
Employment Growth
(-6.2%)
(0%)
(2009-2014)
5.4%
(1%)
-12.5%
(-0.1%)
0%
(-8.9%)
38%
(18%)
22.5%
(14.9%)
-8%
(-1.1%)
9.9%
(2.9%)
4.4%
(3.1%)
21.2%
(8.3%)
9.1%
(23.2%)
One-Year
Employment Growth (2014)
Direct Employment Concentration (2014)
-0.4%
(-2.6%)
2.3%
(-0.4%)
1.9%
(0.7%)
-4.3%
(2.3%)
0.9%
(1.1%)
6.5%
(2.7%)
5.9%
(1.5%)
-3.1%
(-1.7%)
4.2%
(1.3%)
2.8%
(1.7%)
4.9%
(1.6%)
3.2%
(4.1%)
1.1%
(0.2%)
0.9%
(0.7%)
0.6%
(0.3%)
0.2%
(0.3%)
2.3%
(0.8%)
1.6%
(1.3%)
1.1%
(0.5%)
2.1%
(1.8%)
1.3%
(0.9%)
1.7%
(1.7%)
10.4%
(11.6%)
2.5%
(2.0%)
Average Wage
$124,380
$56,670
$72,290
$97,190
$97,700
$109,750
$78,170
$71,110
$175,960
$68,110
$53,440
$99,770
Employment Concentration Ranking
1
13
11
25
5
4
5
7
12
18
30
9
(among 50 largest metros)
Metro Denver and Northern Colorado Industries Economic Performance Snapshot
Bubble charts are popular tools used to illustrate industry clusters. These charts allow multiple variables to be
plotted within the same graph, making it easy to assess relative economic performance. Bubble charts are
often used for pinpointing priority industries since they allow visual comparisons of economic measures.
This chart illustrates industry cluster relationships for the 12 industry clusters and subclusters. The following
three variables are plotted:
•
One-year direct employment growth, 2013 to 2014; on the x-axis (horizontal);
•
The industry’s location quotient, 2014; on the y-axis (vertical); and
•
Employment size of the industry, 2014; indicated by the size of the bubble.
Industry subcluster bubbles are color coded to reflect that they belong to the same cluster. For example, fossil
fuels and cleantech are light purple, indicating that they belong to the energy cluster.
Bubble charts show the clusters in a state or region as measured by total employment size (the bigger the
bubble, the larger the industry in terms of employment), employment growth (the further to the right on the
graph, the more growth), and the location quotient (the further up in the graph, the higher the location
quotient (LQ).
The LQ is a ratio that compares the region's employment share of a particular industry with the employment
share nationwide. The following guidelines are used to evaluate the LQ:
•
LQ > 1 indicates a significant employment concentration compared with the nation.
•
LQ = 1 indicates that the region's employment concentration is equal to that of the nation.
•
LQ < 1 indicates that the region has less of an employment concentration compared with the nation.
The dotted red line on the graph represents the location quotient equal to 1 to easily identify the bubbles that
are above this demarcation.
For example, fossil fuels had substantial employment growth from 2009 to 2014, aerospace had a key
locational advantage represented by its high LQ position on the graph, and healthcare and wellness had a
significant number of employees represented by the size of its bubble. Looking at other clusters, broadcasting
and telecommunications and IT-software are relatively large industries represented by their bubble size and
have above-average employment concentration compared with the nation. While three of the region’s industry
clusters and subclusters contracted between 2009 and 2014—particularly aerospace, pharmaceuticals, and
banking and finance—the majority of the region’s industries reflect growing employment and have location
quotients greater than 1. This indicates that the Metro Denver and Northern Colorado region remains a
competitive location for these clusters, making them priority industries to pursue.
Metro Denver and Northern Colorado Industries Economic Performance Snapshot
Bubble charts are popular tools used to illustrate industry clusters. These charts allow multiple variables to be
plotted within the same graph, making it easy to assess relative economic performance. Bubble charts are
often used for pinpointing priority industries since they allow visual comparisons of economic measures.
This chart illustrates industry cluster relationships for the 12 industry clusters and subclusters. The following
three variables are plotted:
•
Average annual employment growth, 2009 to 2014; on the x-axis (horizontal);
•
The industry’s location quotient, 2014; on the y-axis (vertical); and
•
Employment size of the industry, 2014; indicated by the size of the bubble.
Industry subcluster bubbles are color coded to reflect that they belong to the same cluster. For example, fossil
fuels and cleantech are light purple, indicating that they belong to the energy cluster.
Bubble charts show the clusters in a state or region as measured by total employment size (the bigger the
bubble, the larger the industry in terms of employment), employment growth (the further to the right on the
graph, the more growth), and the location quotient (the further up in the graph, the higher the location
quotient (LQ).
The LQ is a ratio that compares the region's employment share of a particular industry with the employment
share nationwide. The following guidelines are used to evaluate the LQ:
•
LQ > 1 indicates a significant employment concentration compared with the nation.
•
LQ = 1 indicates that the region's employment concentration is equal to that of the nation.
•
LQ < 1 indicates that the region has less of an employment concentration compared with the nation.
The dotted red line on the graph represents the location quotient equal to 1 to easily identify the bubbles that
are above this demarcation.
For example, fossil fuels had substantial employment growth from 2009 to 2014, aerospace had a key
locational advantage represented by its high LQ position on the graph, and healthcare and wellness had a
significant number of employees represented by the size of its bubble. Looking at other clusters, broadcasting
and telecommunications and IT-software are relatively large industries represented by their bubble size and
have above-average employment concentration compared with the nation. While three of the region’s industry
clusters and subclusters contracted between 2009 and 2014—particularly aerospace, pharmaceuticals, and
banking and finance—the majority of the region’s industries reflect growing employment and have location
quotients greater than 1. This indicates that the Metro Denver and Northern Colorado region remains a
competitive location for these clusters, making them priority industries to pursue.
AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
Industry Overview
Colorado is an aerospace industry leader, ranking
first in the nation in 2014 for private aerospace
employment as a percentage of total employment,
and third in total private-sector employment.
Colorado supports a thriving aerospace ecosystem
that includes a broad spectrum of companies,
products, and systems for commercial, military,
and civil space applications. Colorado’s aerospace
companies research, develop, design, and
manufacture guided missiles, spacecraft, satellites
and other communications equipment, and
navigation and detection instruments. Companies
in the aerospace cluster also produce planetary
spacecraft and launch systems and provide mission
support.
The breadth and depth of the aerospace cluster is rooted in support from four military commands, eight major
space contractors, National Aeronautics and Space Administration (NASA) research activities, and several
universities involved in extensive space research. The state’s wealth of talent, research assets, and synergy
between industry, commercialization, research, and workforce development supports its position as a space
industry leader. Colorado has 160 businesses classified as aerospace companies, and more than 400
companies and suppliers providing space-related products and services. Direct employment in the aerospace
cluster totals 25,110 private sector workers and approximately 27,890 military personnel. These nearly
53,000 workers in the aerospace cluster support an additional 109,680 workers in all industries throughout
Colorado, bringing direct and indirect employment supported by the aerospace cluster to 162,680 workers.
The majority of Colorado’s key aerospace businesses, facilities, and research institutions are located in the
nine-county Metro Denver and Northern Colorado region. 1 The region’s 19,560 private sector aerospace
workers represent about 78 percent of all aerospace workers in Colorado. The region’s 120 aerospace
companies represent about 74 percent of the state’s total companies in the cluster.
Private Aerospace Economic Profile
The aerospace cluster consists of 19, six-digit North American Industry Classification System (NAICS) codes
including search, detection, and navigation instrument manufacturing; guided missile and space vehicle
manufacturing; satellite telecommunications; and research and development.
The nine-county region ranked first in the nation for its 2014 concentration of private aerospace
employment. The region’s aerospace cluster ranked first out of the 50 largest metro areas in total
private-sector employment.
1
The nine-county Metro Denver and Northern Colorado region consists of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson,
Larimer, and Weld Counties.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 1
AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
Aerospace Employment and Company Profile, 2014
Nine-County Region
United States
19,560
346,750
120
4,930
One-year direct employment growth, 2013-2014
-0.4%
-2.6%
Five-year direct employment growth, 2009-2014
-3.2%
-6.2%
Avg. annual direct employment growth, 2009-2014
-0.7%
-1.3%
1.1%
0.2%
Direct employment, 2014
Number of direct companies, 2014
Direct employment concentration
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014; Development Research Partners.
Aerospace Employment
The nine-county region’s aerospace
cluster directly employed about 19,560
workers in 2014. Employment in the
region’s aerospace cluster declined 0.4
percent between 2013 and 2014,
compared with a 2.6 percent decrease
at the national level as a result of
ongoing agency consolidations and the
lingering effects of government
spending decreases. From 2009 to
2014, employment in the region’s
aerospace cluster declined 3.2 percent,
compared with a 6.2 percent decline
nationwide. Nearly 6 percent of the
nation’s aerospace employment is
located in the region. Additionally,
aerospace companies employed 1.1
percent of the region’s total
employment base, compared with a 0.2
percent employment concentration
nationwide.
Aerospace
Number of Employees Growth Rate
5%
0%
-5%
2009
2010
2011
2012
Nine-County Region
2013
United States
2014
Avg Annual
Growth
Source: Dun & Bradstreet, Inc., Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014.
About 120 aerospace companies
operated in the nine-county region in
2014. Approximately 54 percent of the
region’s aerospace companies employed
fewer than 10 people, while 12 percent
employed 250 or more.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 2
AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
Aerospace Employment by County, 2014
Adams
2.7%
All other counties
0.8%
Boulder
25.3%
Arapahoe
41.4%
Jefferson
29.9%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Aerospace Employment by Industry Sector, 2014
Aerospace
Space vehicle & castings & metal
Space research &
mfg.
satellite supplies
technology
0.5%
& parts
0.1%
0.6%
Space satellite
communications
equip. mfg.
0.8%
Optical
instruments &
lenses mfg.
3.1%
Search,
detection,
navigation, &
guidance
58.5%
Guided missiles &
space vehicles
36.5%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 3
AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
Major Aerospace Contractors
Eight of the country’s major space contractors have a significant presence in the nine-county region. These
companies support the U.S. Department of Defense (DoD) to procure, place, and manage national space
assets for the military. They also provide manned and unmanned spacecraft, instrumentation, and ground
control services for the National Aeronautics and Space Administration (NASA) and other agencies.
•
Ball Aerospace & Technologies Corp. employs nearly 2,100 in Colorado, and supports critical missions
for national agencies such as the DoD, NASA, the National Oceanic and Atmospheric Administration, and
other U.S. government and commercial entities. The company develops and manufactures spacecraft,
advanced instruments and sensors, components, data exploitation systems, and RF solutions for strategic,
tactical, and scientific applications. www.ballaerospace.com
•
The Boeing Company has nearly 2,300 employees at several locations throughout Colorado with the
largest concentrations in Arapahoe County and Colorado Springs. Core businesses include: Jeppesen, a
key commercial aviation subsidiary; strategic missile defense systems, including Ground-based Midcourse
Defense; space and intelligence and Global Positioning System support; and Boeing military aircraft at
Fort Carson. Boeing spent $205 million with 255 Colorado suppliers in 2013. www.boeing.com
•
Exelis has offices in Aurora, Boulder, and Colorado Springs, altogether employing about 900 people. The
Information Systems division provides a broad set of services including radiological, nuclear, and
missile defense engineering services, space, ground and range services, as well as development and
operations support to the Intelligence Community. The Geospatial Systems division is represented on
the GPS Operational Control System program. Exelis Visual Information Solutions (VIS) provides
software solutions and services for data and image analysis, visualization, image delivery, and rapid
development for commercial, research, and government markets. www.exelisinc.com
•
Lockheed Martin employs nearly 8,600 people in Colorado. Of these workers, nearly 5,100 are employed
at the Space Systems Company unit headquartered in Jefferson County. Space Systems designs,
develops, tests, and manufactures advanced technology systems for its government and commercial
customers. The company also develops products ranging from human space flight systems and navigation,
meteorological, and communications systems to laser radar and missile defense
systems. www.lockheedmartin.com
•
Northrop Grumman provides a diverse portfolio of products and services related to systems integration,
missile systems and national security technologies, defense electronics, marine and space systems, and
battle management. The company also works with advanced aircraft, unmanned aircraft vehicles, naval
vessels, and space technology. Northrop Grumman employs more than 2,100 people throughout
Colorado. www.northropgrumman.com
•
Raytheon Company employs about 2,500 people throughout the state, with the majority of employees
located in Aurora. Raytheon Company manages spacecraft missions and analyzes post-launch data
through a variety of technologies including radio frequency, GPS, communications and intelligence, and
electro-optical/infrared. www.raytheon.com
•
Sierra Nevada Corporation (SNC) has a significant presence in Colorado, employing more than 900
people in the state. SNC's Space Systems Group, located in Louisville, develops small spacecraft
mechanical subsystems, satellite components, and space propulsion systems for government and
commercial customers. The company's Intelligence, Surveillance and Reconnaissance Group in
Centennial provides products and services for a variety of airborne systems. www.sncorp.com
•
United Launch Alliance (ULA), a joint venture between Lockheed Martin’s Atlas and Boeing’s Delta
launch divisions, celebrated its eighth year of operation in 2014. ULA employs about 1,700 of its
3,700-person U.S. workforce at its Centennial headquarters. Most of ULA’s management, engineering, and
mission support functions are concentrated in Colorado, while most assembly and integration operations
are concentrated in Alabama, Texas, and California. The company’s Human Launch Services division
supports NASA and its partners in developing capabilities to deliver U.S. astronauts to low Earth orbit and
human exploration beyond Earth orbit. Since company formation in 2006, ULA has celebrated more than
75 consecutive, successful Delta II, Delta IV, and Atlas V rocket launches. www.ulalaunch.com
Metro Denver Economic Development Corporation | January 29, 2015 | Page 4
AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
Additional Major Private Aerospace Companies
•
ABSL Space Products
www.abslspaceproducts.com
•
Rocky Mountain Instrument Company
www.rmico.com
•
DigitalGlobe, Inc.
www.digitalglobe.com
•
Science Applications International Corp.
www.saic.com
•
IHS Aerospace & Defense
http://aero-defense.ihs.com
•
SEAKR Engineering, Inc.
www.seakr.com
•
Intrex Aerospace
www.intrexcorp.com
•
Surrey Satellite Technology US LLC
www.sst-us.com
•
Merrick & Company
www.merrick.com
•
Trimble Rockies
www.trimble.com
•
Research Electro-Optics, Inc.
www.reoinc.com
•
UP Aerospace Inc.
www.upaerospace.com
Military Aerospace Profile
Colorado is home to a diverse mix of U.S. Department of Defense (DoD) military installations that foster
important synergies between private aerospace companies and government entities.
•
•
•
Buckley Air Force Base in Aurora is home to the 460th Space Wing and supports more than 83
tenant organizations that represent all branches of the military. Tenants are located both on and off
the base. The base also hosts the Colorado Air National Guard 120th Fighter Squadron and its F-16C
fighters.
Air Force Bases in Colorado Springs include Peterson Air Force Base, Cheyenne Mountain Air Force
Station, and Schriever Air Force Base.
o Peterson Air Force Base is the home of the 21st Space Wing as well as the North American
Aerospace Defense Command (NORAD), the U.S. Northern Command (USNORTHCOM), Air
Force Space Command (AFSPC), U.S. Army Space and Missile Defense Command/U.S. Army
Forces Strategic Command (SMDC/ARSTRAT), and the 302nd Airlift Wing (AFRC), as well as a
number of other smaller tenant units. The 21st Space Wing is responsible for worldwide
missile warning, space control, and missile defense.
o Cheyenne Mountain Air Force Station is owned and operated by Air Force Space
Command. It hosts the NORAD and USNORTHCOM Alternate Command Center and other
national security activities.
o Schriever Air Force Base is the home of the 50th Space Wing (SW) as well as the Space
Innovation and Development Center (SIDC), the 310th Space Wing (AFRC), the Missile
Defense Integration and Operations Center (MDIOC), the Joint Functional Component
Command for Integrated Missile Defense (JFCC-IMD), and numerous tenant organizations. The
50th SW is responsible for the operation and support of more than 150 DoD satellites and
installation support to 16 major tenant units with a workforce of more than 8,100 personnel.
The 50th SW provides space combat capability through command, control, operations, and
support of communication, navigation, warning, surveillance, and weather satellite weapons
systems.
The United States Air Force Academy in Colorado Springs was established in 1954 as an accredited
college to educate officers in the U.S. Air Force. The 10th Air Base Wing is the host wing for the Air
Force Academy and provides base-level support activities including medical, engineering, base
logistics, fire response services, communications, security, and other key support for more than
25,000 military and civilian personnel. The Academy has 20 research centers and institutes with more
than 400 professional researchers and faculty dedicated to space, science, air, atmospheric research,
modeling and simulation, and Science, Technology, Engineering, and Mathematics (STEM), exceeding
$60 million in economic impact annually.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 5
AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
Government Installation
Buckley Air Force Base
Personnel
8,930
Peterson Complex*
8,640
U.S. Air Force Academy
7,320
Schriever Air Force Base
3,000
Total Employment
27,890
*Peterson Complex total includes personnel at Peterson Air Force Base and Cheyenne Mountain Air Force
Station (including NORAD, USNORTHCOM, AFSPC, and SMDC/ARSTRAT).
2014 INDUSTRY MILESTONES
Key Company Announcements
The nine-county region’s vibrant aerospace hub is an ideal location for companies to establish and expand. In
2014, Lockheed Martin Space Systems opened a new headquarters for its commercial satellite business. The
company relocated its communications and remote sensing satellite building operation from Newtown, Pa. The
move includes the addition of 350 jobs at the Jefferson County location by mid-2015 and 500 jobs over the
next six years. The company will fill positions in engineering and software, supply-chain management, and
manufacturing.
Research and Education Announcements
The nine-county region’s leading research institutions and educational facilities make significant contributions
to the state’s dynamic aerospace economy.
•
•
•
•
The University of Colorado Boulder (CU-Boulder) and the Jet Propulsion Laboratory (JPL) extended
their partnership in space and Earth-science research. CU-Boulder, which began its collaboration with
JPL in the 1960s, has been involved in roughly 40 sponsored research projects with JPL totaling nearly
$15 million between 2011 and 2013. Research projects include solar system exploration, star and
galaxy formation, advanced telescope optics, and science outreach and climate change.
NASA and Virgin Galactic selected a CU-Boulder payload to fly on a suborbital space plane. The
payload—The Saturated Fluid Pistonless Pump Technology Demonstrator—was developed in
partnership with Calif.-based Flometrics to reduce the weight, complexity, and cost of spacecraft fuel
systems.
NASA selected the Colorado Space Grant Consortium (CSGC) as a recipient of the 2014 National Space
Grant and Fellowship Program to increase student and faculty engagement in science, technology,
engineering, and mathematics (STEM) at community colleges and technical schools. CSGC could
receive up to $500,000 to add four new community college campuses as affiliates to the consortium,
and students and faculty will participate in STEM activities by signing, building, and launching
high-altitude balloon payloads.
The Colorado Space Business Roundtable completed its first Colorado Aerospace Internship
Experience—a two-week immersive program designed to bring together high school and college
students from Colorado’s rural areas to experience a “day in the life” of an employee at host
organizations including ULA, Boeing, and Lockheed Martin. This STEM program allows students to gain
valuable real-world experience as they attend meetings, perform on-the-job tasks, shadow current
employees and network, all of which is fostered in a mentor capacity.
Major Collaborations
The nine-county region is a leader in major commercial, civil, and military space missions and projects.
Examples of these collaborative projects and their progress are highlighted below.
Dream Chaser®
Louisville-based Sierra Nevada Corporation’s Space Systems Group continued to work rigorously on the Dream
Chaser® spacecraft through significant collaboration with other Colorado-based aerospace companies.
The Dream Chaser® is a winged, lifting-body spacecraft designed for International Space Station (ISS) crew
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AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
transportation and other human space flight operations, including international and commercial space
applications. Program developments in 2014 included:
•
Selection of Jefferson County-based Lockheed Martin Space Systems Company to build the composite
structure of the spacecraft and to assist with certifying the vehicle for human spaceflight. Sierra
Nevada and Lockheed Martin unveiled the orbital spacecraft composite airframe, which will be used to
conduct the first orbital test flight in November 2016, atop a United Launch Alliance (ULA) Atlas V
rocket.
•
Signing three cooperative agreements—with the Japanese Aerospace Exploration Agency (JAXA),
CU-Boulder’s BioServe Space Technologies, and Tuskegee University—to collaborate on missions,
technologies, and educational opportunities for the Dream Chaser® spacecraft. The collaboration
successfully completed a series of wind tunnel tests on scale models of the spacecraft, conducted to
study the spacecraft’s reaction to subsonic, transonic, and supersonic conditions that will be
encountered during ascent into space and re-entry from low Earth orbit.
•
Unveiling plans to develop a smaller Dream Chaser® space plane to launch from a Stratolaunch plane,
which could take a crew of three astronauts to low Earth orbit destinations or fly automated missions
without a crew. The smaller plane could begin flight tests in 2016, with the first space mission
scheduled to launch in 2018.
GMI and GPS III
Ball Aerospace & Technologies Corp. launched its Global Precipitation Measurement-Microwave Imager (GMI)
in February 2014. As a joint effort between NASA and JAXA to improve climate, weather, and rainfall
predictions, the mission will play an essential role in the Earth’s weather and environmental forecasting.
Lockheed Martin Space Systems Company is developing the U.S. Air Force’s (USAF) next generation of Global
Positioning System (GPS III) satellites, which will deliver three times better accuracy, provide up to eight
times improved anti-jamming capabilities, and extend spacecraft life by 25 percent. The first satellite is
scheduled for completion in 2015.
InSight
InSight (Interior Exploration using Seismic Investigations, Geodesy and Heat Transport), a NASA
Discovery-class mission to understand the processes that shaped rocky planets such as Mars and Earth, is
scheduled to launch in 2016.
•
Lockheed Martin Space Systems is constructing the Mars lander spacecraft for NASA’s InSight mission.
In addition to conducting the assembly, test, and launch operations phase for the InSight lander,
Lockheed Martin is also assembling and testing the spacecraft’s protective aeroshell capsule and cruise
stage (which provides communications and power during the journey to Mars). Once the spacecraft
has been fully assembled, it will undergo rigorous environmental testing in the summer of 2015.
Joint Polar Satellite System
•
•
NASA awarded Raytheon Company a $185 million modification to its existing Joint Polar Satellite
System (JPSS) Common Ground System contract, which increased the contract’s total value to $1.7
billion. The modification will allow the company to add operational capabilities to the storm- and
weather-tracking satellites, the first of which is scheduled to launch in 2017.
Ball Aerospace received the Clouds and Earth Radiant Energy Systems (CERES) instrument for JPSS-1.
JPSS-1—scheduled to launch in early 2017—will assist in recognizing and monitoring environmental
conditions and also provide vital near-term weather data to meteorologists. Integration of CERES into
the JPSS-1 satellite began in late 2014.
MAVEN
Mars Atmospheric and Volatile EvolutioN (MAVEN) is a prime example of Colorado’s leadership in space
exploration with the entire mission and spacecraft being built and launched by Colorado organizations
including Lockheed Martin Space Systems, CU-Boulder’s Laboratory for Atmospheric and Space Physics,
Exelis, and ULA.
•
•
In September, MAVEN successfully arrived in Mars’ orbit. The $485 million mission will gather data
about the Martian upper atmosphere and the planet’s potential for supporting life.
Early results released by NASA and CU-Boulder indicate the probe has yielded better than expected
data and images, and may have fuel reserves to last at least a decade longer than its planned
one-year mission.
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AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
Orion
Lockheed Martin Space Systems is building Orion, NASA’s first spacecraft designed for long-duration,
human-rated deep space exploration. Orion will transport humans to destinations beyond low Earth orbit, such
as the moon, asteroids, and eventually Mars. In 2014:
•
•
Lockheed Martin Space Systems completed construction of the spacecraft, while NASA installed the
heat shield—the largest ever built—and transported Orion to the Payload Hazardous Servicing Facility
at Kennedy Space Center for fueling.
In December, Orion completed its first test flight, traveling 3,600 miles into space, and orbiting the
Earth twice before a successful splashdown and recovery. The highly successful flight enabled
engineers to test critical safety systems and evaluate launch and high speed re-entry systems,
avionics, altitude control, parachutes, and the heat shield.
OSIRIS-Rex
Lockheed Martin Space Systems will build the Origins Spectral Interpretation Resource Identification Security
Regolith Explorer (OSIRIS-REx). OSIRIS-REx is a NASA asteroid study and sample return mission. Following
launch in 2016, the mission will study and return a sample of a carbonaceous asteroid to Earth for detailed
analyses in 2023.
Aerospace Projects
Launch Missions
•
•
•
•
•
ULA launched nine national security, three space exploration missions, and two commercial missions
in 2014, and twice successfully launching two separate missions from two different coasts in one
week. The launch year included four Global Position Satellites for the USAF, the USAF’s Defense
Meteorological Satellite Program (DMSP-19) payload, and NASA’s Orbiting Carbon Observatory-2
(OCO-2) payload. In addition to Orion EFT-1, other notable ULA launches included the Atlas V carrying
the WorldView-3 satellite in August 2014 and the launch of CLIO—a classified communications satellite
built by Lockheed Martin Space Systems—atop an Atlas V in September 2014.
Highlands Ranch-based UP Aerospace Inc. launched its third NASA mission in 2014, with five payloads
that included a sun sensor from NASA’s Jet Propulsion Laboratory and a radiation-tolerant computer
system from Montana State University. The company’s rockets travel 75 miles into space, with about 4
minutes of time spent in zero gravity.
NASA’s Launch Services Program selected ULA’s Atlas V to launch the $173 million Solar Orbiter
Collaboration mission to study the sun. The Solar Orbiter mission, scheduled to launch in 2017, will
observe the sun’s atmosphere with high spatial resolution lenses and will provide images and data
covering the sun’s polar regions.
ULA and the Boeing Company were selected to support NASA’s Commercial Crew program, sending
critical cargo and the next generation of astronauts to the ISS. ULA will launch Boeing’s manned
CST-100 spacecraft by 2017, playing a pivotal role in advancing human spaceflight.
ULA and Kent, Wash.-based Blue Origin partnered to develop a new rocket engine called the BE-4. The
agreement includes a four-year development process with full-scale testing in 2016 and the first flight
scheduled to launch in 2019. The BE-4 will be available for both companies’ next generation launch
systems.
Satellite Programs
•
•
DigitalGlobe launched WorldView-3 in 2014, the highest-resolution commercial Earth-imaging satellite
ever flown, capable of taking images five times clearer than standard commercial satellites. The
satellite is the first of its kind to feature short-wave, infrared bands through a CAVIS instrument—
clouds, aerosols, vapors, ice, and snow—that allow accurate imaging and data even through
atmospheric obstacles. Four additional Colorado companies played vital roles on WorldView-3. Ball
Aerospace built the spacecraft, Lockheed Martin Commercial Launch Services organized the launch,
and ULA’s Atlas V delivered the satellite into orbit. Exelis Inc. constructed a telescope, shortwave
infrared system, and sensor for the satellite.
DigitalGlobe unveiled plans to accelerate the launch of WorldView-4 (formerly named GeoEye-2), built
by Lockheed Martin, to mid-2016 to meet increased demand. A significant catalyst for this increased
opportunity was the recent U.S. directive to allow images with a resolution up to 25 centimeters to be
sold freely.
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AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
•
•
•
•
•
•
Lockheed Martin successfully integrated the National Oceanic and Atmospheric Administration’s
(NOAA) Geostationary Operational Environmental Satellite-R (GOES-R) system module with the
propulsion module at its Littleton facility. When fully assembled, the satellite will provide accurate,
real-time weather forecasts and early warning products to NOAA and other public and private
organizations. The satellite is scheduled to launch in early 2016.
Ball Aerospace was awarded a contract from Reston, Va.-based Laser Light™ Communications, LLC to
provide its first global, all-optical commercial satellite system. Under the contract, Ball Aerospace will
complete eight out of the 12 satellites in Laser Light’s constellation operating in medium Earth orbit.
When complete, the constellation will transmit data at 6 terabits per second and a service speed of
200 gigabits per second to address growing commercial bandwidth demand.
Ball Aerospace was awarded a $5.8 million contract from the Defense Weather System Directorate at
the Space and Missile Systems Center in California to produce the Ion Velocity Meter (IVM) under the
USAF Space Situational Awareness Environmental Monitoring program. The IVM will fly aboard the
Constellation Observing System for Meteorology, Ionosphere and Climate-2 (COSMIC-2), a joint
mission with Taiwan to launch a constellation of six satellites into low-inclination orbits in late 2015.
Under the contract, Ball Aerospace will build five replicas of the IVM.
Sierra Nevada Corporation’s Space Systems Group designed and constructed 17 satellites for the
ORBCOMM Generation 2 (OG2) constellation using the nation’s first assembly-line specifically designed
to produce a variety of small satellites. OG2 launched in late 2014 and will provide upgraded
machine-to-machine communication services for all branches of industry and government, providing
relay of small data packets at low latencies from mobile transmitters to ground-based terminals.
NASA awarded Colorado State University a $4.5 million, three-year contract to design and build a new
instrument to measure ice particles in clouds and water vapor in the upper troposphere. Information
collected by the Tropospheric Water and Cloud (TWICE) will be used to improve global climate models
and provide data regarding ice particles in the upper atmosphere.
Ball Aerospace is building two air-quality sensors to provide future environmental monitoring. The
geostationary ultraviolet visible spectrometers include the Tropospheric Emissions: Monitoring of
Pollution (TEMPO) for NASA Earth Venture and the Geostationary Environmental Monitoring
Spectrometer (GEMS), which is being jointly developed with the South Korea Aerospace Research
Institute. Both instruments will complete critical design in 2015 and will be delivered in 2017.
Defense Missions
•
•
•
•
•
The USAF awarded Lockheed Martin Space Systems a contract to maintain and develop systems for
the nation’s Minuteman III nuclear missiles through 2022. Under the initial $109 million contract,
Lockheed Martin will repair, modify, and test hardware and software components in the reentry
system-reentry vehicle subsystem. The contract has options for an additional four years, totaling up to
$452 million.
Ball Aerospace received a $23.9 million contract from the NATO Seasparrow Project Office to develop
a missile-detecting laser system for U.S. Navy ships. Under the contract, Ball Aerospace will provide
fabrication test and installation and includes options for spare components, sustaining engineering,
and field support.
The USAF awarded Lockheed Martin Space Systems Company a $1.86 billion contract to complete
construction of the fifth and sixth Geosynchronous Earth Orbit (GEO) satellites for the Space-Based
Infrared System (SBIRS). The SBIRS GEO satellites provide ongoing early warning of ballistic missile
launches and other tactical intelligence with infrared surveillance information and will be completed by
2022.
DigitalGlobe acquired Boulder-based Spatial Energy’s digital imagery and related services. The $37
million acquisition added to the company’s position as a leading source of geospatial information and
insight with new cloud-based solutions tailored to the oil and gas industry.
Lockheed Martin Space Systems purchased Fairfax, Va.-based Zeta Associates Inc., which will become
part of its Jefferson County-based division. The addition of the software company will broaden
Lockheed Martin’s product offerings and strengthens its ability to deliver vital ground, air, and
space-based intelligence systems.
Spaceport Colorado
In 2014, Front Range Airport continued the application process for certification from the Federal Aviation
Administration (FAA) to operate as a horizontal-launch spaceport facility. The subsequent designation for
Spaceport Colorado, which may be granted in 2015, fulfills a 2011 declaration by Gov. John Hickenlooper of
Colorado’s intent to become a spaceport state. The effort will increase Colorado’s competitiveness in the
aerospace industry and support new opportunities in the future growth of commercial space research and
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AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
transportation. Plans for Spaceport Colorado include the development of an aerospace and technology park to
support a broad range of activities and commercial opportunities, including research and development, testing
and evaluation, manufacturing, crew training, scientific research, suborbital flight, point-to-point travel, and
unmanned aircraft systems (UAS). Spaceport Colorado has an abundance of surrounding land and convenient
access to Denver International Airport and the Metro Denver area’s sizeable aerospace industry, research
universities, and talented aerospace workforce.
Unmanned Aerial Systems (UAS)
The nine-county region is a global leader in UAS, with support from unmatched assets including a robust
aerospace industry and military presence, established research institutions, and exceptional geographic and
climatic diversity for testing sites. With UAS representing a growing portion of the nation’s military budget,
and commercial UAS operations set to expand rapidly, the U.S. Congress is encouraging the integration of
UAS into the National Airspace System (NAS), which presents Colorado job growth and economic impact
opportunities. The nine-county region’s UAS resources and key project announcements in 2014 included:
•
•
•
•
The Research and Engineering Center for Unmanned Vehicles (RECUV) at CU-Boulder is a university,
government, and industry partnership dedicated to developing and integrating unmanned vehicle
systems. RECUV engineers new mobile sensing systems, stimulates strategic discussions among
leaders, increases public awareness of UAS, and educates and trains a next generation of engineers.
In 2014, RECUV conducted an international research effort—the first multiple, unmanned aircraft
interception of a rush of cold air, or gust front—preceding a thunderstorm across the Pawnee National
Grassland. The research focuses on developing a smart, small unmanned aircraft system that can plan
its own flight path to maximize endurance by combining real-time weather-radar and
atmospheric-model data with measurements made from the aircraft.
The Jonathan Merage Foundation awarded the College of Engineering and Applied Science at
CU-Boulder a $130,000 contract to design a tracker vehicle and a new lightning detection instrument
for integration into a small, unmanned aircraft. The system will be designed to measure electric field
changes associated with lightning strikes. This project will occur in three phases over the next year,
with deployments for thunderstorms beginning in the spring of 2015.
The University of Denver’s Unmanned Systems Research Institute (DU2SRI) promotes knowledge,
education, research, and development in unmanned systems, and is pushing forward the frontiers of
unmanned systems to develop the next generation of fully autonomous UAS. The DU2SRI
infrastructure includes five unmanned ground vehicles, one all-terrain mobile robot, more than 17
(electric and non-electric) unmanned helicopters and quadrotors, FAA-approved simulators, electronics
design and fabrication capabilities, and complete UAS design and testing. In April 2014, the University
of Denver signed an integrated robotics patent license agreement.
The U.S. Geological Survey’s (USGS) National Unmanned Aircraft Systems Project Office, located in
Denver, leads and coordinates USGS efforts to promote and develop UAS technology for civil and
domestic applications. These efforts will directly benefit the U.S. Department of the Interior and USGS
missions, including access to an increased level of persistent monitoring of earth surface processes
(e.g. forest health conditions, monitoring wildfires, earthquake zones, and invasive species) in
previously difficult to access areas.
Industry Infrastructure Support
The nine-county region’s unique public-private partnerships support the state’s thriving aerospace cluster.
•
•
•
The Colorado Space Coalition (CSC), a group of industry stakeholders, works to make Colorado a
center of excellence for space. The Coalition—including aerospace companies, military leaders,
academic groups, and economic development organizations—promotes the state’s significant
aerospace assets nationally and advances legislation vital to industry growth and success.
eSpace: The Center for Space Entrepreneurship was established in 2009 as a partnership between the
University of Colorado and Sierra Nevada Space Systems. The not-for-profit business incubator
develops and catalyzes new entrepreneurial space companies, commercializing aerospace technologies
created within these companies, and developing the aerospace workforce to support them. Since its
inception, eSpace has generated a $7.1 million economic impact to the state and has fostered a
thriving entrepreneurial aerospace industry through three successful programs: eSpace Incubator,
Straight to Space workforce initiative, and the Venture Design program.
The Center of Excellence for Commercial Space Transportation—a partnership between government,
industry, the FAA, and nine academic institutions including CU-Boulder—formed in 2010 to address
current and future challenges of commercial space transportation. CU-Boulder plays a key role,
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AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
•
offering its experience in spacecraft life-support systems and habitat design, human factors
engineering analysis, payload experiment integration, and expertise in space environment and orbital
mechanics.
The Colorado Space Business Roundtable (CSBR) is an independent, nonprofit organization promoting
the growth of space and space-related industry in Colorado, with particular focus on small space
businesses. CSBR members include a broad cross-section of the Colorado space community including
industry, government, and academia that support the space industry with services, advocacy, and
procurement. In 2013, the CSBR sponsored a week-long networking road trip to help connect major
space contractors along the Front Range with smaller aerospace subcontractors, suppliers, and
businesses in Pueblo, Durango, Rifle, Grand Junction, and Alamosa.
Private Aerospace Workforce Profile
Many companies choose locations because of the available workforce. With nearly half of the nine-county
region’s 3.6 million residents under the age of 35, employers can draw from a large, young, highly educated,
and productive workforce. Of the region’s adult population, 41.2 percent are college graduates and 90.5
percent have graduated from high school. The state has the nation’s second-most highly educated workforce
as measured by the percentage of residents with a bachelor’s degree or higher.
The attractiveness of the region draws new residents through migration. The region’s population is expected
to grow 53.3 percent from 2010 to 2040, driving a 36.3 percent increase in the region’s labor force over the
same period. It is important to note the changing composition of the workforce supply as the baby boomers
begin to retire, which will pose implications for businesses whose employee pool includes significant numbers
of these workers.
Educational Attainment of Metro Denver and Northern
Colorado's Population Age 25 and Older
Less than 9th
Grade
3.9%
Graduate or
Professional
Degree
15.3%
9th to 12th Grade,
No Diploma
5.6%
High School
Graduate
(includes
equivalency)
20.0%
Bachelor’s
Degree
25.9%
Some College,
No Degree
21.7%
Associate Degree
7.7%
Source: U.S. Census Bureau, 2013 American Community Survey.
3,000,000
Metro Denver and Northern Colorado's Labor Force
Projections by Age
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2010
16-24
2020
25-34
35-44
2030
45-54
55-64
2040
65+
Source: Colorado Division of Local Government, State Demography Office.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 11
AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
The nine-county region’s aerospace industry
employs 19,560 people and includes a large
pool of talented, well-educated, and highly
skilled workers. Compared with the age
distribution across all industries, the
aerospace cluster has a larger share of
employees that are between the ages of 35
and 64 years old.
Metro Denver and Northern Colorado's Distribution of
Employment by Age
35%
30%
25%
20%
15%
The aerospace workforce supply consists of
four main components: those currently
10%
working in the industry; those doing a
similar type of job in some other industry;
5%
the unemployed; and those currently in the
0%
education pipeline. The Metro Denver and
16-24
25-34
35-44
45-54
55-64
65+
Northern Colorado Occupation & Salary
Aerospace
All Industries
Profile below includes the 10 largest
Source: Provided by Arapahoe/Douglas Works! QCEW Employees, Non-QCEW Employees, Self Employed, &
Extended Proprietors - EMSI 2014.3 Class of Worker.
aerospace occupations in the region. For
these 10 largest occupations, the chart
details the total number of workers employed in that occupation across all industries, the number of available
applicants that would like to be working in that occupation, the number of recent graduates that are qualified
for that occupation, and the median and sample percentile annual salaries.
Wages
Wages in the aerospace cluster are among the highest across all industry clusters. The 2013 average annual
salary for an aerospace worker in the nine-county region was $124,380, compared with the national average
of $100,200. Total nine-county payroll in the aerospace cluster exceeded $2.4 billion in 2013.
Metro Denver and Northern Colorado Aerospace Occupation & Salary Profile, 2014
10 Largest Aerospace
Occupations
in Metro Denver and Northern
Colorado
1. Aerospace engineers
2. Business operations
specialists, all other
3. Software developers,
systems software
4. Mechanical engineers
5. Software developers,
applications
6. Biological technicians
7. General & operations
managers
8. Industrial engineers
9. Atmospheric & space
scientists
10. Secretaries &
administrative assistants,
except legal, medical, &
executive
Total
Working Number of
Across All Available
Industries Applicants
(2014)
(2014)
Number of
Graduates
(2013)
138
Median
Salary
$104,728
10th
Percentile
Salary
25th
Percentile
Salary
75th
90th
Percentile Percentile
Salary
Salary
2,350
119
$64,106
$80,558
$126,214 $159,203
31,368
776
77
$65,707
$33,654
$46,446
$88,296 $113,381
10,390
4,654
174
215
630
454
$98,238
$82,618
$63,419
$48,901
$79,373
$63,627
$119,267 $139,443
$105,747 $131,560
18,702
2,206
345
108
585
0
$87,963
$42,702
$52,125
$30,264
$67,434
$34,632
$108,597 $130,749
$55,182 $67,517
33,235
2,629
1,528
102
5,881
11
$105,706
$85,904
$54,226
$58,136
$72,467
$70,117
$158,683 $230,630
$103,917 $124,342
1,216
9
49
$104,000
$62,795
$83,117
$129,314 $145,184
49,103
678
71
$35,381
$23,005
$28,558
$43,139
$50,773
Notes: The number of available applicants is a point-in-time measurement of the number of people who have registered in Colorado’s
workforce development system’s statewide database, Connecting Colorado, as being able and available to work in a particular occupation.
Results should be interpreted with caution since registration in Connecting Colorado is self-reported. In addition, the skills rubric may assign
up to four occupation codes for each registrant. Therefore, the number of available applicants could be inflated. Source: Provided by
Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2014.3 Class of Worker.
Education & Training
Colorado’s higher education system provides an excellent support system for businesses in the region. There
are 28 public higher education institutions in Colorado, of which seven four‐year and six two‐year public
institutions offering comprehensive curricula are located in the nine‐county region. In addition, there are more
Metro Denver Economic Development Corporation | January 29, 2015 | Page 12
AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
than 100 private and religious accredited institutions and nearly 340 private occupational and technical
schools offering courses in dozens of program areas throughout the state. Although not exhaustive, a list of
the major, accredited educational institutions with the greatest number of graduates for each of the 10 largest
aerospace occupations in the nine-county region are included below. A directory of all higher education
institutions with corresponding websites may be accessed via http://highered.colorado.gov.
•
Colorado School of Mines
www.mines.edu
•
Metropolitan State University of Denver
www.msudenver.edu
•
University of Denver
www.du.edu
•
Colorado State University
www.colostate.edu
•
Regis University
www.regis.edu
•
University of
Northern Colorado
www.unco.edu
•
Colorado State University Global Campus
www.colostate.edu
•
University of Colorado Boulder
www.colorado.edu
•
Jones International University
www.jiu.edu
•
University of Colorado Denver
www.ucdenver.edu
Key Reasons for Aerospace Companies to Locate in the Nine-County
Region
The region is a top aerospace location offering:
1. The ability to recruit and retain technical and scientific employees and entrepreneurial talent
•
Of Colorado’s adult population, nearly 38 percent has completed a bachelor’s or higher-level degree,
making Colorado the second-most highly educated state in the nation behind Massachusetts. (U.S.
Census Bureau, 2013 American Community Survey)
•
Colorado ranked ninth in the number of science and engineering graduate students per 1,000
individuals ages 25 to 34 years old in 2011. (National Science Foundation, 2014)
•
Colorado ranked fourth in the number of scientists and engineers as a share of all occupations in
2012. (National Science Foundation, 2014)
•
Colorado ranked 10th in the number of patents issued per 1 million people in 2013. (U.S. Patent and
Trademark Office, 2014; U.S. Bureau of Economic Analysis, 2014)
•
The U.S. Department of Commerce's United States Patent and Trademark Office located one of four
new satellite offices in Denver due to the state's expansive culture of innovation and entrepreneurism.
(U.S. Patent and Trademark Office, 2014)
•
Metro Denver ranked as the ninth‐best metro area for science, technology, engineering, and
mathematics (STEM) graduates in 2014. STEM jobs in Metro Denver represented 8.2 percent of all
occupations and the area’s annual mean wage for STEM jobs was $84,380. (NerdWallet, 2014)
•
Denver ranked as the seventh-best city for millennials (ages 25-34) out of 25 major cities with a
population over 1 million in 2014. (Niche.com, 2014)
•
Denver ranked among the top five “Best Cities for New College Grads” in 2014. (Kiplinger’s Personal
Finance, 2014)
2. Proximity to vendors and customers
•
Colorado received the nation’s fourth-highest National Aeronautics and Space Administration (NASA)
prime contract awards in 2013, receiving more than $1.7 billion. The University of Colorado ranked
fifth and Colorado State University ranked 58th among the top 100 public educational institutions for
NASA research awards in 2013. (NASA, 2014)
•
The nine-county region’s aerospace cluster is anchored by eight large prime contractors: Ball
Aerospace, The Boeing Company, Exelis, Lockheed Martin, Northrop Grumman, Raytheon, Sierra
Nevada Corporation, and United Launch Alliance.
•
Colorado is home to major military operations including Buckley AFB, Peterson AFB, Schriever AFB,
and Cheyenne Mountain Air Force Station. In addition, the U.S. Air Force Academy is located just
outside of Colorado Springs.
•
Cheyenne Mountain Complex serves as NORAD and USNORTHCOM's Alternate Command Center and
as a training site for crew qualification.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 13
AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
•
The U.S. Department of Defense (DoD) awarded Colorado a Procurement Technical Assistance Center
(PTAC) in 2009, which assists Colorado businesses do business with prime contractors and federal,
state, and local governments at nominal or no cost. The central office for Colorado’s PTAC is located in
Colorado Springs and satellite offices in Aurora, Golden, and Westminster.
3. Business organizations and public policy programs designed to encourage industry growth
•
In 2013, Gov. Hickenlooper named Maj. Gen. Jay Lindell to be Colorado’s Aerospace and Defense
Industry Champion, whose role is to oversee implementation of the state’s aerospace strategic plan
and assist aerospace businesses, defense installations, and research institutions.
•
The Advanced Industries (AI) Accelerator Programs were created in 2013 to promote growth and
sustainability in Colorado’s advanced industries including advanced manufacturing, aerospace,
bioscience, electronics, energy and natural resources, infrastructure engineering, and technology and
information. The Colorado Office of Economic Development and International Trade offers Proof of
Concept, Early-Stage Capital & Retention, Infrastructure Funding, and AI Exports grants. Since
inception, the programs have awarded 67 grants totaling $8.2 million to support these critical
industries in their various phases of growth. (The Colorado Office of Economic Development and
International Trade, 2014)
•
To further encourage investment in Colorado’s aerospace industry, legislation passed in 2014 will help
support the state’s growing aerospace economy. House Bill 1178 (2014) exempted personal property
used in an orbital space facility, a space propulsion system, satellite, or space station from sales and
use taxes. The exemption will encourage capital investment in aerospace manufacturing supplies.
•
President Obama signed into law the Bipartisan Budget Act of 2013, which includes more than $2.7
billion in funding for Colorado’s space projects and initiatives. The funding includes $1.2 billion for
Orion, $824 million for the Joint Polar Satellite System, and $2 million for the Boulder-based
COSMIC-2 satellite program. These projects are all being partially built in Colorado.
•
To further pave the way for Spaceport Colorado, legislation passed in 2012 will help expand the state’s
aerospace economy. Senate Bill 035 (2012) limited the liability for public and private entities holding a
Federal Aviation Administration license for spaceflight activities. The legislation is an important first
step in initiating commercial spaceflight activities in the state.
4. Proximity to colleges/universities
•
•
•
•
•
Two academic institutions in Colorado offer nationally ranked aerospace programs or degrees:
o The University of Colorado Boulder’s (CU-Boulder) aerospace engineering sciences graduate
program ranked among the top 10 in the nation. (U.S. News & World Report, 2014)
o The National Research Council ranked CU-Boulder’s aerospace engineering sciences graduate
program among the top four in the country. (National Research Council, 2010)
o The U.S. Air Force Academy in Colorado Springs ranked second among schools that do not
offer doctoral degrees for its undergraduate aerospace engineering program for the 13th
consecutive year. (U.S. News & World Report, 2013)
The University of Colorado system ranked 10th among the nation’s public institutions for science and
engineering research and development expenditures totaling $800 million in fiscal year 2012. The
university also ranked fourth for federally funded research expenditures. (National Science
Foundation, 2014)
CU-Boulder’s Laboratory for Atmospheric and Space Physics is the only research institution that has
designed and built space instruments for NASA that have launched to every planet in the solar
system.
CU-Boulder is the only university outside of the Naval Postgraduate School to have two astronaut
alumni on its faculty. Thirteen of CU-Boulder’s astronaut alumni are affiliates of the College of
Engineering and Applied Science. (University of Colorado, 2014)
The University of Colorado is among the top-five U.S. universities, excluding military academies, in the
number of astronaut alumni. Of the 20 astronaut alumni, 19 have flown in space as of 2014.
(University of Colorado, 2014)
5. Low to moderate costs of doing business
•
Colorado's simplified corporate income tax structure based on single-factor apportionment allows
companies to pay taxes based solely on their sales in the state. Along with few regulatory burdens,
Colorado's corporate income tax rate of 4.63 percent is one of the lowest and most competitive tax
structures in the nation. (State of Colorado; The Tax Foundation)
•
Colorado has the nation’s ninth-best tax climate for entrepreneurship and small business. (Small
Business & Entrepreneurship Council, 2014)
Metro Denver Economic Development Corporation | January 29, 2015 | Page 14
AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
•
Metro Denver office rental rates averaged $28.83 per square foot in the fourth quarter of 2014,
making the region’s office market highly competitive with other major markets in the U.S. (CoStar
Realty Information, The CoStar Office Report, Q4 2014)
6. Pro-business and flexible state and local governments
•
Forbes ranked Metro Denver fourth among the “Best Places for Business and Careers” in 2014. Four
other Colorado metropolitan areas were included on the list. The Fort Collins metro area ranked fifth
overall, Greeley ranked 20th, Boulder ranked 23rd, and Colorado Springs ranked 29th. (Forbes, 2014)
•
Colorado tied with Virginia as the eighth-best state for business in 2014 and the state earned top-10
rankings in the categories that measure access to capital (first), workforce (fifth), economy (eighth),
and technology and innovation (ninth). (CNBC, 2014)
•
Colorado ranked second in innovation and entrepreneurship and was among the top 10 states for
infrastructure, business climate, and talent pipeline. (National Chamber Foundation, 2014)
•
Colorado ranked as the No. 8 small-business-friendly state in the nation. Fort Collins (24th) and
Denver (28th) ranked among 84 cities in the country. (Thumbtack.com, 2014; Ewing Marion Kauffman
Foundation, 2014)
Aerospace Industry Cluster Definition
NAICS Code*
331512
(P)
NAICS Description
Steel investment foundries
SIC Code
3324-9901
331524
331529
(P)
(P)
3365-0201
3369-9901
332111
332112
(P)
(P)
Aluminum foundries (except die-casting)
Other nonferrous metal foundries (except diecasting)
Iron & steel forging
Nonferrous Forging
332313
(P)
Plate work mfg.
3443-1104
332813
(P)
3471-0204
332993
(P)
Electroplating, plating, polishing, anodizing &
coloring
Ammunition (except small arms) mfg.
332993
333314
334220
(P)
(P)
(P)
Ammunition (except small arms) mfg.
Optical instrument & lens mfg.
Radio & television broadcasting & wireless
communications equipment mfg.
Search, detection, navigation, guidance,
aeronautical, & nautical system & instrument mfg.
Guided missile & space vehicle mfg.
Guided missile & space vehicle propulsion unit &
propulsion unit parts mfg.
Other guided missile & space vehicle parts & aux.
equipment mfg.
Surgical appliance & supplies mfg.
Transportation equipment & supplies (except
motor vehicle) merchant wholesalers
Transportation equipment & supplies (except
motor vehicle) merchant wholesalers
Transportation equipment & supplies (except
motor vehicle) merchant wholesalers
All other telecommunications
3483-9910
3827
3663-9910
Research and development in the physical,
engineering, and life sciences (except
biotechnology)
Space research and technology
Space research and technology
3761
334511
336414
336415
336419
339113
423860
(P)
(P)
423860
(P)
423860
(P)
517919
(P)
541712
(P)
927110
927110
3761
3764
SIC Description
Aerospace investment castings,
ferrous mfg.
Aerospace castings, aluminum mfg.
Aerospace castings, nonferrous:
except aluminum mfg.
Missile & ordnance forgings mfg.
Nonferrous missile & ordnance
forgings mfg.
Space simulation chambers, metal
plate mfg.
Decontaminating & cleaning of
missile or satellite parts mfg.
Arming & fusing devices for missiles
mfg.
Missile warheads mfg.
Optical instruments & lenses
Space satellite communications
equipment mfg.
Search, detection, navigation,
guidance
Guided missiles & space vehicles
Space propulsion units & parts
3769
Space vehicle equipment NEC
3842-0113
5088-0300
Space suits mfg.
Aircraft & space vehicle supplies &
parts - wholesale trade
Guided missiles & space vehicles –
wholesale trade
Space propulsion units & parts –
wholesale trade
Missile tracking by telemetry or
photography
Guided missiles and space vehicles
3462-05
3463-02
3483-0101
3812
5088-0305
5088-0307
4899-9902
9661
4789-9902
Space research and technology
Space flight operations, except
government
*(P) indicates that only part of the NAICS industry category is represented in the industry cluster definition.
Note: NEC indicates “not elsewhere classified.”
Metro Denver Economic Development Corporation | January 29, 2015 | Page 15
AEROSPACE: Metro Denver and Northern Colorado Industry Cluster Profile
Aerospace Industry Cluster Relationships
Technologies
Support Industries
Aviation
Computer Storage
Geospatial
Government
Manufacturing
Software
Telecommunications
GIS
GPS
Nanotechnology
Photonics
Remote Sensing
Client Industries
Aviation
Geospatial
Security/Defense
Telecommunications
Aerospace
Infrastructure
AUVSI
BioServe Space Technologies
Colorado Center for Astrodynamics
CO Photonics Industry Association
CO Space Business Roundtable
CO Space Coalition
CO Space Education Initiative
CO Space Grant Consortium
CU-Aerospace Engineering
CSU-Dept. of Atmospheric Science
GIS of the Rockies
NCAR, NOAA, NIST
National Defense Industrial Assoc.
RECUV
Rocky Mountain Technology Alliance
Space Foundation
Spaceport CO & Aeronautical Authority
Space Science Institute
For additional information, contact us:
1445 Market Street
Denver, CO 80202-1790
303.620.8092
email: info@metrodenver.org
www.metrodenver.org
For more information on
Colorado’s aerospace industry:
303.620.8133
email: info@spacecolorado.org
www.spacecolorado.org
Prepared by Development Research Partners, Inc., www.DevelopmentResearch.net
Metro Denver Economic Development Corporation | January 29, 2015 | Page 16
AVIATION: Metro Denver and Northern Colorado Industry Cluster Profile
Industry Overview
The aviation cluster includes companies that
manufacture aircraft and provide air transportation
services. More specifically, the cluster includes
airlines, airports, aircraft manufacturing and
technology companies, and support services.
Colorado’s robust system of 76 public-use airports
supports 265,000 jobs, $12.6 billion in payroll, and
generates $36.7 billion in economic output annually.
Denver International Airport (DIA) provides an
invaluable link between the nine-county Metro Denver
and Northern Colorado region 1 and the global
community. By promoting trade and commerce, DIA
serves as a catalyst to transform the region into one
of the nation’s most prosperous and vital economies.
In 2013, DIA managed about 1,600 flight operations
and more than 144,000 passengers every 24 hours, making it the fifth-busiest airport in the nation and 15th
busiest in the world. Total passenger traffic at DIA reached 52.6 million in 2013 and set several records for
monthly passenger traffic. This was the sixth year in DIA history that the airport’s yearly passenger traffic
exceeded 50 million.
In 2014, DIA served 25.9 million passengers during the first six months, reporting the busiest first half of the
year in its 19-year history. In November 2014, DIA’s year-to-date passenger traffic exceeded 49 million and
international passenger traffic increased year-over-year for the 31st-consecutive month. International traffic
reached the second-highest level ever for the first half of 2014, rising 12 percent between June 2013 and
2014, with 1.1 million international passengers served during the first six months. More than 20 nonstop
flights operate between Denver and international destinations in nine countries, including recent additions to
Panama City, Guadalajara, and Chihuahua. With the addition of these international cities and existing flights
from DIA to Europe, Asia, and South America, these destinations form a global triangle with Denver at the
nucleus.
Similar to passenger traffic, air freight activity remains a dynamic part of the airport’s daily operations. Eight
cargo airlines and 13 major and national carriers currently provide DIA cargo service. With 24-hour
operations, the airfield and a 39-acre cargo ramp make freight handling efficient, with no curfews. The
airport’s total cargo operations currently exceed approximately 226,315 metric tons per year.
Aviation Economic Profile
The aviation cluster consists of 41, six-digit North American Industry Classification System (NAICS) codes
including aircraft manufacturing, passenger and freight air transportation, airport operations, and air traffic
control.
With direct employment of 16,350 aviation workers, the nine-county region ranked 11th out of the
50 largest metro areas in absolute employment in 2014. The region ranked 13th for aviation
employment concentration. Roughly 73 percent of Colorado’s aviation cluster employees work in the region.
1
The nine-county Metro Denver and Northern Colorado region consists of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson,
Larimer, and Weld Counties.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 1
AVIATION: Metro Denver and Northern Colorado Industry Cluster Profile
Aviation Employment and Company Profile, 2014
Nine-County Region
United States
16,350
1,013,630
570
39,510
One-year direct employment growth, 2013-2014
2.3%
-0.4%
Five-year direct employment growth, 2009-2014
1.6%
0.0%
Avg. annual direct employment growth, 2009-2014
0.3%
0.0%
Direct employment concentration
0.9%
0.7%
Direct employment, 2014
Number of direct companies, 2014
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014; Development Research Partners.
Aviation Employment
The nine-county region’s aviation
employment (16,350 workers) rose 2.3
percent in 2014, compared with the
previous year’s level, adding nearly 380
new jobs over the same period. National
employment levels declined 0.4 percent
over-the-year. Nearly 2 percent of the
nation’s aviation employment is located
in the region. Between 2009 and 2014,
the region’s aviation employment rose
1.6 percent, compared with no change
at the national level. Aviation companies
employed 0.9 percent of the region’s
total employment base, compared with
a 0.7 percent employment concentration
nationwide.
About 570 aviation companies operated
in the nine-county region in 2014.
Eighty percent of the region’s aviation
companies employed fewer than 10 people,
while 1.2 percent employed 250 or more.
Aviation
Number of Employees Growth Rate
10%
5%
0%
-5%
-10%
2009
2010
2011
2012
Nine-County Region
2013
United States
2014
Avg Annual
Growth
Source: Dun & Bradstreet, Inc., Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 2
AVIATION: Metro Denver and Northern Colorado Industry Cluster Profile
Aviation Employment by County, 2014
Douglas
0.8%
Weld
0.6%
Broomfield
0.3%
Larimer
1.9%
Boulder
2.1%
Jefferson
2.4%
Denver
79.3%
Adams
2.5%
Arapahoe
10.0%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Aviation Employment by Industry Sector, 2014
Aircraft & aircraft Aircraft repair
services
parts mfg.
1.4%
2.1%
Aircraft
regulating
agencies
3.4%
Other aviationrelated services
3.7%
Nonscheduled air
transport
7.2%
Aviation schools,
flying instruction,
& air shows
0.9%
Scheduled air
transport
66.3%
Airports, flying
fields, & airport
terminal services
15.0%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 3
AVIATION: Metro Denver and Northern Colorado Industry Cluster Profile
Nine-County Region Airport Information
The nine-county region’s commercial, reliever, and general aviation airports form a cohesive system for
commerce and air travel needs. The diverse system of airports provides residents and businesses outstanding
access to regional, national, and international markets. The state’s largest airport—Denver International
Airport (DIA)—generates more than $26 billion for the region annually. Combined, the nine-county region’s
airports contribute more than $28 billion to the region’s economy annually, according to CDOT’s Division of
Aeronautics.
Denver International Airport (DIA)
DIA is a state-of-the-art facility owned and operated by the City and County of Denver. Occupying 53 square
miles and located approximately 24 miles northeast of downtown Denver, DIA is the primary airport serving
the nine-county region and the state of Colorado. DIA has more than 35,000 badged employees who work for
the airport and approximately 1,200 at the City and County of Denver.
DIA accommodates more than 50 million passengers annually with six runways, three concourses, 109 gates,
and 42 regional aircraft positions. DIA can serve the ever-expanding international travel market via the sixth
runway, the longest in North America. DIA has 15 commercial carriers offering scheduled nonstop service
from Denver to more than 180 domestic and international destinations, with major hubs for United,
Southwest, and Frontier Airlines.
The nine-county region is a natural hub for cargo operations due to its central U.S. location and access to an
extensive freight network and major interstate highways. Additionally, the airport’s air cargo and mail facilities
comprise 375,000 square feet in five buildings south of the airfield, with room to expand. DIA is home to
several world-class cargo companies and support facilities, including World Port Cargo Support, DHL, UPS,
FedEx, and United Airlines cargo. The U.S. Postal Service facility is also located nearby, providing a wide array
of competitive shipping and receiving options. Further, more than 50 freight forwarders and customs brokers
operate within 20 miles of DIA.
DIA is a recognized leader in sustainability efforts, and was the first airport in the nation to receive ISO 14001
Environmental Management System certification in 2004. The airport is also a Gold Member of the Colorado
Department of Public Health and Environment’s Environmental Leadership Program. The airport continually
works to reduce its carbon footprint through a variety of energy efficient technologies. DIA is the largest
distributed generation photovoltaic energy producer in Colorado and its four solar array systems produce
approximately 6 percent of the airport’s total electrical power requirements. The airport has one of the largest
compressed natural gas fleets in the country including 172 buses, sweepers, and other alternatively fueled
vehicles, and 121 electric and hybrid electric vehicles. Alternative vehicles comprise roughly 51 percent of the
airport’s light duty fleet.
Reliever Airports
Three reliever airports—those designated by the Federal Aviation Administration (FAA) to relieve traffic at
commercial airports and general aviation airports, and provide other aviation services—are strategically
located throughout the nine-county region. These airports support the state and regional economies by
creating jobs and contributing to overall economic development efforts. Further, the airports are among the
fastest growing in the country and represent a vital part of the Colorado aviation industry’s future economic
growth and vitality.
•
•
Centennial Airport is the premier reliever and business airport in the state. Supporting 23 business
parks and more than 6,000 businesses responsible for more than 27 percent of the state’s GDP, the
airport provides all services necessary to compete in a global economy. The airport is home to four, 24/7
award-winning fixed-based operator concierge services, a fully staffed 24/7 FAA Air Traffic Control Tower
and on-demand U.S. Customs clearances, nationally ranked catering, a 10,000-foot CAT 1 ILS runway,
gateway service to Ronald Reagan Washington National Airport, and some of the most competitive fuel
prices in the country. Services such as Flight for Life, law enforcement, medical flights, flight schools, and
aircraft maintenance services are also based at the airport. Centennial Airport generates more than $1.3
billion for the region annually, the highest among the state’s general aviation airports.
Front Range Airport, located six miles southeast of DIA, is the region’s only reliever airport without
major residential areas nearby and no noise or over-flight impacts making it both remote and convenient.
At just under 4,000 acres, Front Range is the largest reliever airport in the region, and includes 1,000
acres for aviation and aerospace development. Additionally, an adjacent 6,300-acre business park is
planned for development to support airport-related commercial and business activities. Front Range
Airport has the nation’s tallest general aviation tower, which controls two 8,000-foot/CAT 1 ILS
Metro Denver Economic Development Corporation | January 29, 2015 | Page 4
AVIATION: Metro Denver and Northern Colorado Industry Cluster Profile
•
full-precision runways and associated taxiway and ramp system. CDOT’s Division of Aeronautics is located
at Front Range Airport in a state-owned building. Spaceport Colorado has proposed to create an aerospace
technology park on the airport campus for research and commercial development and the FAA could issue
a spaceport operator license by mid-2015.
Rocky Mountain Metropolitan Airport (RMMA), located between downtown Denver and Boulder, is the
most convenient reliever airport to downtown Denver, and one of the five busiest airports in Colorado.
Averaging more than 120,000 operations each year, RMMA has three runways, including a 9,000-foot CAT
1 ILS runway, and offers a user-fee designated U.S. Customs Office open 24 hours a day. RMMA also has
Part 139 FAA airport certification with established requirements for commuter passenger service and
large, on-demand aircraft charter. RMMA is home to more than 40 aviation companies and flight
departments, including the U.S. headquarters of Pilatus Business Aircraft and HeliQwest. The airport is
adjacent to the Interlocken Business Park and Westmoor Technology Park, and also houses the U.S.
Forest Service tanker base and the National Center for Atmospheric Research. A new, state-of-the-art FAA
control tower opened at the airport in 2012. In 2014, RMMA continued work on the Airport Master Plan
Update including a new Corporate Taxilane and enhanced airport pavements, with completion expected in
late 2016. The airport generates more than $460 million in annual impact to the region.
General Aviation Airports
Colorado's general aviation airports form a cohesive system for commerce and air travel needs. Five general
aviation airports are located in the nine-county region:
Boulder Municipal Airport
Erie Municipal Airport
Fort Collins-Loveland Municipal
Airport
•
•
•
Greeley-Weld County Airport
Longmont Municipal Airport
•
•
Metro Denver’s airports receive significant support from the region, especially from the Colorado Department
of Transportation’s (CDOT) Division of Aeronautics and the Metro Denver Aviation Coalition (MDAC).
Established in 1991, CDOT’s Division of Aeronautics supports Colorado’s general aviation and regional
commercial aviation community through aviation fuel tax revenues, a discretionary aviation grant program,
and long-range system planning in partnership with Colorado’s general aviation airports. MDAC is an industry
affiliate of the Metro Denver Economic Development Corporation that serves as a private-sector advocate
dedicated to the continued growth and development of the region’s aviation industry, including the long-term
growth and vision of DIA and Metro Denver’s three reliever and five general aviation airports.
Major Aviation Companies
•
Air Methods Corp.
www.airmethods.com
•
Heli-One Colorado
www.heli-one.ca
•
American Airlines, Inc.
www.aa.com
•
Integrated Airline Services, Inc.
www.iasair.com
•
Air Serv Corp.
www.airservcorp.com
•
Jeppesen
www.jeppesen.com
•
Delta Air Lines, Inc.
www.delta.com
•
Pilatus Aircraft
www.pilatus-aircraft.com
•
DHL
www.dhl.com
•
Signature Flight Support
www.signatureflight.com
•
FedEx
www.fedex.com
•
Southwest Airlines
www.southwest.com
•
Frontier Airlines
www.flyfrontier.com
•
United Airlines
www.united.com
•
Great Lakes Aviation
www.greatlakesav.com
•
United Parcel Service Inc.
www.ups.com
Metro Denver Economic Development Corporation | January 29, 2015 | Page 5
AVIATION: Metro Denver and Northern Colorado Industry Cluster Profile
2014 Industry Highlights
Denver International Airport Project Updates
Several projects were underway at DIA in 2014:
•
•
•
•
•
•
Construction continued on the Hotel and Public Transit Center that will transform the area directly
south of Jeppesen Terminal. Several project milestones were reached, including major road and bridge
construction and more than 60 percent of the East Rail Line was completed. The $544 million project
will include a new onsite 519-room Westin Denver International Airport Hotel and Conference Center,
a station for the 23-mile commuter rail line that will connect DIA with Denver Union Station in
downtown Denver, an open-air plaza above the station providing connections to the main terminal,
and upgrades to the airport’s existing train and baggage systems. The hotel, conference center, and
public plaza will open in the fall of 2015, with rail service starting in 2016.
DIA completed two projects designed to improve two of its most heavily used runways. The first
project was a $10.3 million reconstruction of Runway 7-25, which replaced 400 deteriorating concrete
slabs. The second project was a $14.7 million upgrade to the lighting system on Runway 8-26. DIA
also replaced the lighting in the east and west parking garages with energy-efficient LED lighting,
which is expected to trim DIA’s energy use in the garages by 45 percent.
Southwest Airlines opened five new gates on Concourse C and renovated its existing gates. The airline
has more than 170 daily flights to nearly 60 nonstop destinations from Denver, which is the
fastest-growing market in the carrier’s history.
DIA will add 14 new restaurants and stores, including a brewery-themed eatery to the new Westin
Hotel airport hotel that is currently under construction. The businesses will include restaurants, bars,
coffee kiosks, and high-end fashion stores slated to open in late 2015.
The U.S. Transportation Security Administration (TSA) opened a new application center for its
Pre-Check service at DIA. TSA Pre ✓® provides passengers a dedicated security-screening lane with
benefits that include leaving on shoes and light outerwear and belts, as well as leaving laptops and
compliant liquids in carry-on bags.
DIA added its fourth solar array capable of generating up to 2 megawatts (MW) of power. The
electricity from the new solar array will be used to power the Denver Fire Department’s Aircraft
Rescue and Fire Fighting Training Academy at the airport. Collectively, DIA’s four solar systems can
generate 10 MW of power.
Key Company Announcements
A number of airlines and aviation companies expanded in the nine-county region in 2014.
•
•
•
•
•
•
United Airlines will reclaim 175 jobs that were previously outsourced to SkyWest Airlines. The
company decided to outsource 600 positions and bring 400 positions back to the company’s airline
hubs, including Denver. The available positions include ticket and gate agents, and baggage handlers
for United Express flights.
United Airlines extended its lease with DIA through 2035. The lease agreement could save United
nearly $35 million each year through the airport’s debt restructuring.
Englewood-based Air Methods Corp. purchased a new flight simulator and plans to be a hub for flight
training with the addition of three more simulators through 2016. Air Methods operates a fleet of 400
medical aircraft consisting of 380 helicopters and 20 planes, roughly one-third of the country’s medical
aircraft.
Broomfield-based Pilatus Aircraft received a $312 million contract from Santa Monica, Calif.-based Surf
Air to build 65 single-engine turboprop planes. Upon completion, Surf Air will be the largest single
operator of Pilatus PC-12, a six- or eight-passenger plane. While the aircraft are manufactured in
Switzerland, they are shipped to Broomfield for interior fabrication and painting.
Frontier Airlines leased the former Continental Airlines hangar at DIA. The hangar will serve as a
maintenance facility for aircraft and ground service equipment. Under the five-year lease, Denver will
reimburse the airline for costs of up to $1.6 million to repair the hangar.
Southwest Airlines will increase nonstop service in the 2015 summer season from 174 to 185
departures a day, adding 50 jobs at DIA.
Global Market Additions and Service Milestones
DIA increased its presence in several global markets and celebrated numerous service milestones in 2014:
Metro Denver Economic Development Corporation | January 29, 2015 | Page 6
AVIATION: Metro Denver and Northern Colorado Industry Cluster Profile
•
•
•
•
•
•
United Airlines began nonstop service between Denver and Panama City, Panama in December 2014.
Panama City will provide a direct link to its hub of international commerce and will serve as a gateway
to destinations across Latin America. The flights will be offered daily between November and August
and five times weekly between September and October. The new service could have an estimated $35
million to $40 million annual economic impact to Colorado and support more than 400 new jobs.
Volaris Airlines began nonstop service from Denver to Guadalajara and Chihuahua, Mexico in July
2014. This marked the first airline to offer fights directly from Denver to cities in Mexico that are not
vacation hubs or the country’s capital.
British Airways will increase its capacity on its daily flights between Denver and London by 23 percent
and will add first-class service. The airline will begin flying a Boeing 747-400 between DIA and
Heathrow Airport in March 2015. The increased capacity will allow more convenient access to the
United Kingdom and to connections to other European cities. London is Denver’s largest market in
Europe.
Nonstop flights between Denver and Dallas Love Field began at the end of 2014. Nonstop flights
between Dallas and other cities were prohibited by the 1980 Wright amendment. Due to the change in
policy, Southwest airlines initially added three daily nonstop flights to Denver and has since increased
to five nonstop flights.
United Airlines and DIA celebrated the one-year anniversary of the nonstop flight between Denver and
Narita International Airport in Tokyo. During the first year of service, nearly 720 Boeing 787 flights
carried nearly 130,000 passengers. The nonstop service generated an estimated annual economic
impact of $130 million to the state’s economy and created 1,500 jobs.
Frontier Airlines celebrated 20 years of service in July 2014. The airline began service in 1994 from
the Stapleton International Airport to Bismarck, Fargo, Grand Forks, and Minot, North Dakota. Frontier
Airlines provides more than 3,300 jobs, 85 daily departures, and served 15 unique destinations in
2014.
Spaceport Colorado
In 2014, Front Range Airport continued the application process for certification from the FAA to operate as a
horizontal-launch spaceport facility. The subsequent designation for Spaceport Colorado, which may be
granted in 2015, fulfills a 2011 declaration by Gov. John Hickenlooper of Colorado’s intent to become a
spaceport state. The effort will increase Colorado’s competitiveness in the aerospace industry and support new
opportunities in the future growth of commercial space research and transportation. Plans for Spaceport
Colorado include the development of an aerospace and technology park to support a broad range of activities
and commercial opportunities, including research and development, testing and evaluation, manufacturing,
crew training, scientific research, suborbital flight, point-to-point travel, and unmanned aircraft systems
(UAS). Spaceport Colorado has an abundance of surrounding land and convenient access to DIA and the Metro
Denver area’s sizeable aerospace industry, research universities, and talented aerospace workforce.
Unmanned Aerial Systems (UAS)
The nine-county region is a global leader in UAS, with support from unmatched assets including a robust
aerospace industry and military presence, established research institutions, and exceptional geographic and
climatic diversity for testing sites. With UAS representing a growing portion of the nation’s military budget,
and commercial UAS operations set to expand rapidly, the U.S. Congress is encouraging the integration of
UAS into the National Airspace System (NAS), which presents Colorado job growth and economic impact
opportunities. The nine-county region’s UAS resources and key project announcements in 2014 included:
•
•
The Research and Engineering Center for Unmanned Vehicles (RECUV) at the University of Colorado
Boulder (CU-Boulder) is a university, government, and industry partnership dedicated to developing
and integrating unmanned vehicle systems. RECUV engineers new mobile sensing systems, stimulates
strategic discussions among leaders, increases public awareness of UAS, and educates and trains a
next generation of engineers. In 2014, RECUV conducted an international research effort—the first
multiple, unmanned aircraft interception of a rush of cold air, or gust front—preceding a thunderstorm
across the Pawnee National Grassland. The research focuses on developing a smart, small unmanned
aircraft system that can plan its own flight path to maximize endurance by combining real-time
weather-radar and atmospheric-model data with measurements made from the aircraft.
The Jonathan Merage Foundation awarded the College of Engineering and Applied Science at
CU-Boulder a $130,000 contract to design a tracker vehicle and a new lightning detection instrument
for integration into a small, unmanned aircraft. The system will be designed to measure electric field
Metro Denver Economic Development Corporation | January 29, 2015 | Page 7
AVIATION: Metro Denver and Northern Colorado Industry Cluster Profile
•
•
changes associated with lightning strikes. This project will occur in three phases over the next year,
with deployments for thunderstorms beginning in the spring of 2015.
The University of Denver’s Unmanned Systems Research Institute (DU2SRI) promotes knowledge,
education, research, and development in unmanned systems, and is pushing forward the frontiers of
unmanned systems to develop the next generation of fully autonomous UAS. The DU2SRI
infrastructure includes five unmanned ground vehicles, one all-terrain mobile robot, more than 17
(electric and non-electric) unmanned helicopters and quadrotors, FAA-approved simulators, electronics
design and fabrication capabilities, and complete UAS design and testing. In April 2014, the University
of Denver signed an integrated robotics patent license agreement.
The U.S. Geological Survey’s (USGS) National Unmanned Aircraft Systems Project Office, located in
Denver, leads and coordinates USGS efforts to promote and develop UAS technology for civil and
domestic applications. These efforts will directly benefit the U.S. Department of the Interior and USGS
missions, including access to an increased level of persistent monitoring of earth surface processes
(e.g. forest health conditions, monitoring wildfires, earthquake zones, and invasive species) in
previously difficult to access areas.
Aviation Workforce Profile
Many companies choose locations because
of the available workforce. With nearly
half of the nine-county region’s 3.6 million
residents under the age of 35, employers
can draw from a large, young, highly
educated, and productive workforce. Of
the region’s adult population, 41.2
percent are college graduates and 90.5
percent have graduated from high school.
The state has the nation’s second-most
highly educated workforce as measured
by the percentage of residents with a
bachelor’s degree or higher.
The attractiveness of the region draws
new residents through migration. The
region’s population is expected to grow
53.3 percent from 2010 to 2040, driving a
36.3 percent increase in the region’s labor
force over the same period. It is
important to note the changing
composition of the workforce supply as
the baby boomers begin to retire, which
will pose implications for businesses
whose employee pool includes significant
numbers of these workers.
The nine-county region’s aviation industry
employs 16,350 people and includes a
large pool of talented, well-educated, and
highly skilled workers. Compared with the
age distribution across all industries, the
aviation cluster has a larger share of
employees between the ages of 25 and 64
years old.
Educational Attainment of Metro Denver and Northern
Colorado's Population Age 25 and Older
9th to 12th Grade,
No Diploma
5.6%
High School
Graduate
(includes
equivalency)
20.0%
Bachelor’s
Degree
25.9%
Some College,
No Degree
21.7%
Associate Degree
7.7%
Source: U.S. Census Bureau, 2013 American Community Survey.
3,000,000
Metro Denver and Northern Colorado's Labor Force
Projections by Age
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2010
16-24
The aviation workforce supply consists of
four main components: those currently
Less than 9th
Grade
3.9%
Graduate or
Professional
Degree
15.3%
2020
25-34
35-44
2030
45-54
55-64
2040
65+
Source: Colorado Division of Local Government, State Demography Office.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 8
AVIATION: Metro Denver and Northern Colorado Industry Cluster Profile
working in the industry; those doing a
similar type of job in some other
industry; the unemployed; and those
currently in the education pipeline. The
Metro Denver and Northern Colorado
Occupation & Salary Profile below
includes the 10 largest aviation
occupations in the region. For these 10
largest occupations, the chart details the
total number of workers employed in that
occupation across all industries, the
number of available applicants that would
like to be working in that occupation, the
number of recent graduates that are
qualified for that occupation, and the
median and sample percentile annual
salaries.
Metro Denver and Northern Colorado's Distribution of
Employment by Age
30%
25%
20%
15%
10%
5%
0%
16-24
25-34
35-44
Aviation
45-54
55-64
65+
All Industries
Source: Provided by Arapahoe/Douglas Works! QCEW Employees, Non-QCEW Employees, Self Employed, &
Extended Proprietors - EMSI 2014.3 Class of Worker.
Wages
The 2013 average annual salary for aviation employees in the nine-county region was $56,670, compared
with the national average of $66,710. Total nine-county payroll in the aviation cluster exceeded $905 million
in 2013.
Metro Denver and Northern Colorado Aviation Occupation & Salary Profile, 2014
Total
Working Number of
10 Largest Aviation Occupations Across All Available
in Metro Denver and Northern
Industries Applicants
Colorado
(2014)
(2014)
1. Aviation pilots, copilots, &
flight engineers
2. Flight attendants
3. Reservation &
transportation ticket
agents & travel clerks
4. Painters, construction &
maintenance
5. Transportation workers,
all other
6. Aircraft mechanics &
service technicians
7. Carpenters
8. Construction laborers
9. Emergency medical
technicians & paramedics
10. Labor & freight, stock, &
material movers, hand
Number of
Graduates
(2013)
Median
Salary
10th
Percentile
Salary
25th
Percentile
Salary
75th
90th
Percentile Percentile
Salary
Salary
$142,043 $168,635
$43,541 $46,302
2,859
2,476
114
67
75
0
$106,264
$38,899
$47,744
$31,628
$87,625
$34,578
2,555
35
0
$28,750
$21,513
$23,475
$42,406
$47,891
4,487
93
30
$31,534
$21,665
$27,675
$35,308
$39,799
1,839
79
19
$38,225
$21,816
$26,607
$43,835
$47,519
1,696
17,912
21,184
53
354
704
241
75
19
$63,313
$33,419
$29,182
$35,423
$24,992
$21,833
$48,753
$28,765
$25,677
$75,241
$37,256
$33,204
$82,480
$42,171
$38,102
1,860
84
939
$42,455
$20,533
$27,314
$61,728
$71,765
22,984
1,064
0
$25,318
$18,377
$20,793
$32,953
$42,761
Notes: The number of available applicants is a point-in-time measurement of the number of people who have registered in Colorado’s
workforce development system’s statewide database, Connecting Colorado, as being able and available to work in a particular occupation.
Results should be interpreted with caution since registration in Connecting Colorado is self-reported. In addition, the skills rubric may assign
up to four occupation codes for each registrant. Therefore, the number of available applicants could be inflated. Source: Provided by
Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2014.3 Class of Worker.
Education & Training
Colorado’s higher education system provides an excellent support system for businesses in the region. There
are 28 public higher education institutions in Colorado, of which seven four‐year and six two‐year public
institutions offering comprehensive curricula are located in the nine‐county region. In addition, there are more
than 100 private and religious accredited institutions and nearly 340 private occupational and technical
schools offering courses in dozens of program areas throughout the state. Although not exhaustive, a list of
the major, accredited educational institutions with the greatest number of graduates for each of the 10 largest
Metro Denver Economic Development Corporation | January 29, 2015 | Page 9
AVIATION: Metro Denver and Northern Colorado Industry Cluster Profile
aviation occupations in the nine-county region are included below. A directory of all higher education
institutions with corresponding websites may be accessed via http://highered.colorado.gov.
•
Colorado State University
www.colostate.edu
•
Red Rocks Community College
www.rrcc.edu
•
University of Denver
www.du.edu
•
Front Range Community College
www.frontrange.edu
•
Regis University
www.regis.edu
•
University of
Northern Colorado
www.unco.edu
•
Jones International University
www.jiu.edu
•
University of Colorado Boulder
www.colorado.edu
•
Metropolitan State University of Denver
www.msudenver.edu
•
University of Colorado Denver
www.ucdenver.edu
Key Reasons for Aviation Companies to Locate in the Nine-County
Region
The region is a top aviation location offering:
1. A prime air transportation location
•
Denver International Airport (DIA) was the fifth-busiest airport in the nation and 15th-busiest
worldwide in terms of passenger traffic in 2013. (U.S. Bureau of Transportation Statistics, 2014;
Airports Council International 2014; and Denver International Airport, 2014)
•
Located on the 105th meridian, the nine-county region’s central location at the exact midpoint
between Tokyo and Frankfurt positions the region favorably to serve growing world markets. The
region is an excellent location for doing business with the entire nation and is within four hours flying
time of every North American city with a population of 1 million or more. (Metro Denver Economic
Development Corporation)
•
DIA is the largest airport site in North America and the second-largest international airport in the
world by land size. Encompassing 53 square miles of land, DIA is one of the few major U.S. airports
with room to expand its current facilities to accommodate future growth. (Denver International
Airport, 2014)
•
DIA’s six nonintersecting runways offer a competitive advantage for businesses relying on speed to
market, facilitated by state-of-the-art logistics facilities, airside-to-groundside interface, and air route
connectivity throughout North America and to Asia, Europe, and South America. (Airport City Denver,
2014)
•
DIA ranked fifth among the nation’s 100 largest airports for the greatest decline in average domestic
airfares since the first quarter of 2000. The average domestic fare at DIA fell 45.4 percent between
the first three months of 2000 and 2014, while the average U.S. domestic fare declined 18.9 percent
over the 14-year period. (U.S. Bureau of Transportation Statistics, 2014)
•
Skytrax ranked DIA as the fifth-best domestic airport in the world in its annual World Airport Awards.
DIA was also recognized for the best airport staff service in North America, the second-best regional
airport in North America, the third-best airport in North America, and the ninth-best world airport
serving more than 50 million passengers annually. (Skytrax, 2014)
•
Three general purpose Foreign Trade Zones in Metro Denver and Northern Colorado allow
manufacturers using imported parts and materials to expedite customs and reduce or eliminate fees
and tariffs. Aspen Distribution, Inc. operates the original site located near the former Stapleton
Airport, and the second zone, WorldPort at DIA, is just minutes from DIA. The newest and largest
zone geographically—Great Western Industrial Park in Windsor—connects to the Burlington Northern
Santa Fe and Union Pacific rail lines via the Great Western Railway of Colorado. (City and County of
Denver)
2. Lower overall costs of doing business
•
Colorado's simplified corporate income tax structure based on single-factor apportionment allows
companies to pay taxes based solely on their sales in the state. Along with few regulatory burdens,
Colorado's corporate income tax rate of 4.63 percent is one of the lowest and most competitive tax
structures in the nation. (State of Colorado; The Tax Foundation)
Metro Denver Economic Development Corporation | January 29, 2015 | Page 10
AVIATION: Metro Denver and Northern Colorado Industry Cluster Profile
•
•
•
•
•
•
•
•
To promote aviation growth in the state, aircraft manufacturers or companies that are involved in the
maintenance and repair, completion, or modification of aircraft located in aviation development zones
can qualify for a state income tax credit of $1,200 per new employee in tax years between 2006 and
2017. (Colorado Department of Revenue)
Signed into law in 2014, On-demand Air Carrier Sales & Use Tax Exemption supports Colorado’s
business-friendly climate for aviation companies. House Bill 1374 (2014) provides sales and use tax
exemptions for on-demand air carriers and eligible aircraft that on-demand air carriers utilize only for
the purpose of final assembly, maintenance, modification, or completion of the aircraft manufacturing
process.
The City and County of Denver began a two-year phase out of its 3.62 percent sales and use tax on
aviation parts in 2014. The exemption will bring new, high-paying aircraft maintenance jobs to
Denver. (The City and County of Denver, 2014)
Legislation passed in 2008 abolished Colorado’s fly-away sales tax on planes manufactured in
Colorado. The exemption, a valuable incentive for aircraft manufacturers, applies to aircraft built in
Colorado but housed in another state. (State of Colorado, Office of the Governor)
Forbes ranked Metro Denver fourth among the “Best Places for Business and Careers” in 2014. Four
other Colorado metropolitan areas were included on the list. The Fort Collins metro area ranked fifth
overall, Greeley ranked 20th, Boulder ranked 23rd, and Colorado Springs ranked 29th. (Forbes, 2014)
Colorado tied with Virginia as the eighth-best state for business in 2014 and the state earned top-10
rankings in the categories that measure access to capital (first), workforce (fifth), economy (eighth),
and technology and innovation (ninth). (CNBC, 2014)
Colorado has the nation’s ninth-best tax climate for entrepreneurship and small business. (Small
Business & Entrepreneurship Council, 2014)
Metro Denver office rental rates averaged $28.83 per square foot in the fourth quarter of 2014,
making the region’s office market highly competitive with other major markets in the U.S. (CoStar
Realty Information, The CoStar Office Report, Q4 2014)
3. Access to aviation-related training programs
•
The Aviation and Aerospace Science Department at Metropolitan State University of Denver (MSUD) is
one of the largest and most advanced collegiate aviation programs in the country, and home to the
state-of-the-art Robert K. Mock World Indoor Airport and Advanced Aviation and Aerospace Flight
Simulation Training Lab.
•
In 2014, Great Lakes Airlines established a priority hiring agreement for MSUD aviation graduates.
Students who enter the new program, which provides classes, training, and pilot certifications, are
guaranteed an interview at Great Lakes.
•
MSUD is revolutionizing aviation and aerospace education with its Aerospace Engineering Sciences
building, a high-tech, collaborative-learning facility that will house multiple disciplines to answer the
workforce needs of the aviation, aerospace, and advanced manufacturing industries. (Metropolitan
State University of Denver, 2014)
•
The nine-county region offers nearly 20 flight training schools at Boulder Municipal Airport, Centennial
Airport, Erie Municipal Airport, Fort Collins-Loveland Municipal Airport, and Rocky Mountain
Metropolitan Airport. These schools provide pilot training, aviation instruction, and certification
programs. (Metropolitan State University of Denver, 2014)
•
MSUD and Aims Community College in Greeley are among 36 schools approved under the Federal
Aviation Administration’s Air Traffic Collegiate Training Initiative. (Federal Aviation Administration,
2014)
•
Colorado-based Heli-Ops is one of the nation’s leading high altitude helicopter training centers and
helicopter operators and is the first helicopter flight school in the nation to adopt a curriculum-wide
Scenario Based Training program. (Colorado Heli-Ops, 2014)
•
The Emily Griffith Opportunity School offers a Federal Aviation Administration (FAA)-certified aircraft
maintenance program in airframe and powerplant mechanics at its Aircraft Training Center located at
Front Range Airport.
•
Redstone College is located adjacent to Rocky Mountain Metropolitan Airport and offers programs in
airframe and power plants (A&P) and electronics technology. Redstone is also one of the largest
providers of newly licensed FAA A&P mechanics and graduates are recruited by some of the nation’s
top aviation employers. (Redstone College)
Metro Denver Economic Development Corporation | January 29, 2015 | Page 11
AVIATION: Metro Denver and Northern Colorado Industry Cluster Profile
4. An overall better quality of life
•
Metro Denver ranked as the fourth-fittest metro area in the nation in 2014. Denver’s high percentage
of residents participating in physical activity, and low obesity and cardiovascular disease rates
contributed to its high rank. (American College of Sports Medicine, 2014)
•
Colorado has the fourth-highest percentage of state land area devoted to the National Forest System.
The state offers access to more than 50 national parks and wilderness areas, 42 state parks, and the
greatest number of 14,000-foot peaks in the nation that support a healthy, active lifestyle. (U.S.
Forest Service, 2014; Colorado State Parks, 2014)
•
Boulder ranked second on the 2014 list of the “Top 100 Best Places to Live.” Aurora (50th) and
Lakewood (88th) were also named to the list. (Livability.com, 2014)
•
Castle Rock ranked fourth in MONEY Magazine’s 2014 list of the “Best Places to Live.” Centennial
(13th) and Boulder (23rd) were also named to the list’s top 50. (MONEY Magazine, 2014)
•
Denver ranked as the seventh-best city for millennials (ages 25-34) out of 25 major cities with a
population over 1 million in 2014. (Niche.com, 2014)
•
FasTracks, a comprehensive project to build out Metro Denver’s entire mass transit system by 2019, is
the largest simultaneous transit buildout in U.S. history. The expansion will make Metro Denver one of
the top five regions in the country in terms of miles of fixed rail.
•
The cost of living in Metro Denver is only 8 percent above the national average and is well below that
of many other major cities. (The Council for Community and Economic Research, Cost of Living Index,
Q3 2014)
•
Metro Denver ranked third-sunniest among 20 major U.S. cities with sunshine on almost 70 percent of
the days each year. (U. S. National Oceanic and Atmospheric Administration, National Climatic Data
Center, 2013)
Aviation Industry Cluster Definition
NAICS Code*
238320
(P)
314110
(P)
NAICS Description
Paint & wall covering contractors
Carpet & rug mills
SIC Code
1721-0301
2273-0100
314110
(P)
Carpet & rug mills
2273-0101
326211
326211
331491
(P)
(P)
(P)
3011-0102
3011-0202
3357-9901
332111
332112
332312
332510
332912
332999
(P)
(P)
(P)
(P)
(P)
(P)
3462-9901
3463-9901
3449-9904
3429-0401
3492-01
3537-0101
Aircraft forgings, ferrous
Aircraft forgings, nonferrous
Landing mats, aircraft: metal
Aircraft hardware
Fluid power valves for aircraft
Aircraft engine cradles
333318
(P)
3699-0302
333924
(P)
Flight simulators (training aids),
electronic
Aircraft loading hoists
334519
334519
(P)
(P)
Tire mfg. (except retreading)
Tire mfg. (except retreading)
Nonferrous metal (except copper & aluminum)
rolling, drawing, & extruding
Iron & steel forging
Nonferrous forging
Fabricated structural metal mfg.
Hardware mfg.
Fluid power valve & hose fitting mfg.
All other miscellaneous fabricated metal product
mfg.
Other commercial & service industry machinery
mfg.
Industrial truck, tractor, trailer, & stacker
machinery mfg.
Other measuring & controlling device mfg.
Other measuring & controlling device mfg.
SIC Description
Aircraft painting
Aircraft & automobile floor
coverings
Aircraft floor coverings, except
rubber or plastic
Airplane inner tubes
Airplane tires, pneumatic
Aircraft wire & cable, nonferrous
334519
334519
(P)
(P)
Other measuring & controlling device mfg.
Other measuring & controlling device mfg.
3829-0104
3829-0110
334519
334519
(P)
(P)
Other measuring & controlling device mfg.
Other measuring & controlling device mfg.
3829-0111
3829-0112
334519
(P)
Other measuring & controlling device mfg.
3829-0113
336310
336320
(P)
(P)
vehicle gasoline engine & engine parts mfg.
vehicle electrical and electronic equipment
3592-0101
3647-9901
336320
(P)
vehicle electrical and electronic equipment
3694-0206
336360
(P)
Motor
Motor
mfg.
Motor
mfg.
Motor
vehicle seating & interior trim mfg.
2399-0404
3537-0201
3829-0102
3829-0103
Fuel densitometers, aircraft engine
Fuel mixture indicators, aircraft
engine
Fuel system instruments, aircraft
Pressure & vacuum indicators,
aircraft engine
Synchronizers, aircraft engine
Testers for ck. hydraulic controls on
aircraft
Thrust power indicators, aircraft
engine
Valves, aircraft
Aircraft lighting fixtures
Motors, starting: automotive &
aircraft
Automobile & aircraft seat belts
Metro Denver Economic Development Corporation | January 29, 2015 | Page 12
AVIATION: Metro Denver and Northern Colorado Industry Cluster Profile
NAICS Code*
336360
(P)
336411
336412
336413
423860
(P)
423860
(P)
423860
(P)
423860
(P)
423860
(P)
424720
(P)
441228
481111
481112
481211
481212
481219
481219
488111
488119
(P)
Aviation Industry Cluster Definition Cont’d
NAICS Description
SIC Code
Motor vehicle seating & interior trim mfg.
2531-0302
Aircraft mfg.
3721
Aircraft engine & engine parts mfg.
3724
Other aircraft part & auxiliary equip. mfg.
3728
Transportation equip. & supplies (except motor
5088-0301
vehicle) merchant wholesalers
Transportation equip. & supplies (except motor
5088-0302
vehicle) merchant wholesalers
Transportation equip. & supplies (except motor
5088-0303
vehicle) merchant wholesalers
Transportation equip. & supplies (except motor
5088-0304
vehicle) merchant wholesalers
Transportation equip. & supplies (except motor
5088-0306
vehicle) merchant wholesalers
Petroleum & petroleum products merchant
5172-0201
wholesalers (except bulk stations & terminals)
Motorcycle, ATV, & all other motor vehicle dealers
5599-01
Scheduled passenger air transportation
4512
Scheduled freight air transportation
4512
Nonscheduled charter passenger
4522
Nonscheduled charter freight
4522
Other nonscheduled air transportation
4522
Other nonscheduled air transportation
7997-9901
Air traffic control
9621-01
Other airport operations
4581
SIC Description
Aircraft seats
Aircraft
Aircraft engines & engine parts
Aircraft parts & equip., NEC
Aeronautical equip. & supplies
Aircraft & parts, NEC
Aircraft engines & engine parts
Aircraft equip. & supplies, NEC
Helicopter parts
Aircraft fueling services
Aircraft dealers
Scheduled air transport
Scheduled air transport
Nonscheduled air transport
Nonscheduled air transport
Nonscheduled air transport
Aviation club, membership
Aircraft regulating agencies
Airports, flying fields, & airport
terminal services
Airports, flying fields, & airport
terminal services
Aircraft & heavy equip. repair
services
Aircraft flight instrument repair
Aviation propeller & blade repair
Hydraulic equip. repair
Aircraft rental
488190
Other support activities for air transportation
4581
488190
Other support activities for air transportation
7699-2200
488190
488190
488190
532411
(P)
7699-2201
7699-2202
7699-2206
7359-0401
541330
(P)
Other support activities for air transportation
Other support activities for air transportation
Other support activities for air transportation
Commercial air, rail, & water transportation equip.
rental & leasing
Engineering services
561330
561599
(P)
(P)
7363-9908
4729-0101
561720
(P)
Professional employer organizations
All other travel arrangement & reservation
services
Janitorial services
Flight training
Flight training
Ambulance services
All other amusement & recreation industries
Communication equip. repair & maintenance
Other electronic & precision equip. repair &
maintenance
Regulation & admin of transportation programs
8249-9901
8299-9908
4522
7999-1002
7622-0101
7629-9901
Airports, flying fields, & airport
terminal services
Aviation school
Flying instruction
Nonscheduled air transport
Air shows
Aircraft radio equip. repair
Aircraft electrical equip. repair
9621-01
Aircraft regulating agencies
611512
611512
621910
713990
811213
811219
(P)
(P)
(P)
(P)
926120
(P)
8711-9902
4581
Aviation and/or aeronautical
engineering
Pilot service, aviation
Airline ticket offices
*(P) indicates that only part of the NAICS industry category is represented in the industry cluster definition.
Note: NEC indicates “not elsewhere classified.”
Metro Denver Economic Development Corporation | January 29, 2015 | Page 13
AVIATION: Metro Denver and Northern Colorado Industry Cluster Profile
Aviation Industry Cluster Relationships
Technologies
Support Industries
Food Service
Geospatial
Government
Hotels
Maintenance
Manufacturing
Rail
Security
Trucking
Warehousing
Flight Simulation
GPS
GIS
Photonics
Radar
Client Industries
Aerospace
Air Ambulance
Business Travelers
Cargo/Couriers
Distribution
Firefighting
Government
Tourism/Consumers
Warehousing
Aviation
Infrastructure
CO Airport Operators Assoc.
CO Aviation Business Assoc.
CO Pilots Assoc.
CO Civil Air Patrol
CO Dept. of Transportation –
Aeronautics Division
Metro Denver Aviation Coalition
Metropolitan State University of
Denver
Redstone College of Aviation Tech
Flight Training Schools
For additional information, contact us:
1445 Market Street
Denver, CO 80202-1790
303.620.8092
email: info@metrodenver.org
www.metrodenver.org
For more information on the
region’s aviation cluster:
303.620.8083
email: info@metrodenver.org
www.metrodenver.org/MDAC
Prepared by Development Research Partners, Inc., www.DevelopmentResearch.net
Metro Denver Economic Development Corporation | January 29, 2015 | Page 14
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
Industry Overview
The bioscience cluster is diverse in both size and
scope, including companies that research,
develop, and distribute products and services
ranging from cutting-edge pharmaceuticals and
medical devices and diagnostics to veterinary
supplies and chemical testing kits. The cluster
contributes to the growth and innovative
capacity of other industries that transcend the
bioscience cluster including healthcare and
wellness, energy, information technology, and
agriculture in the nine-county Metro Denver and
Northern Colorado region. 1 Advances in biology
and breakthroughs in human and animal health
will continue to foster innovation and provide
the nine-county region a leading role in forming
collaborative bioscience partnerships and
supporting bioscience infrastructure.
The bioscience cluster is divided into two subclusters, each of which specializes in distinct aspects of the
biosciences: (1) medical devices and diagnostics and (2) pharmaceuticals and biotechnology. With more than
15,120 bioscience workers in 600 companies, the bioscience cluster offers numerous opportunities in both
academic and clinical discovery and contributes to the region’s overall economic productivity. A related
subcluster, although not specifically included in this report, is agricultural biotechnology. The agricultural
biotechnology subcluster includes companies that utilize distinct elements of conventional breeding,
biochemistry, molecular genetics, and plant physiology to improve the health of humans and animals. This
subcluster employs nearly 1,030 workers in 100 companies in the region and grew 3.3 percent between 2009
and 2014, compared with a 1.2 percent decline nationwide.
The nine-county region is home to numerous public and private bioscience research and innovation assets,
including:
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The Anschutz Medical Campus of the University of Colorado Denver (CU-Denver)
National Jewish Health
The Colorado Clinical and Translational Sciences Institute
The Barbara Davis Center for Diabetes
The Charles C. Gates Center for Regenerative Medicine and Stem Cell Biology
The Rocky Mountain Lions Eye Institute
The Linda Crnic Institute for Down Syndrome
The Marion Downs Hearing Center
The Eleanor Roosevelt Institute
The Webb-Waring Center
The Centers for Disease Control and Prevention’s National Center for Zoonotic, Vector-Borne, and
Enteric Diseases in Fort Collins
Colorado State University’s (CSU) Seed Laboratory and Animal Reproduction and Biotechnology
Laboratory
The Biofrontiers Institute at the University of Colorado Boulder (CU-Boulder)
The University of Colorado and CSU have created a collaboration of bioscience programs to coordinate
bioscience research and commercialize innovative research technologies including the Colorado Institute for
Drug, Device and Diagnostic Development (CID4), the Colorado Center for Drug Discovery (C2D2), the
BioFrontiers Institute, the Center for Computational Biology, the Center for Translational Pharmacokinetics and
Pharmacogenomics, and the Center for Pharmaceutical Biotechnology.
The nine-county Metro Denver and Northern Colorado region consists of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson, Larimer,
and Weld Counties.
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Metro Denver Economic Development Corporation | January 29, 2015 | Page 1
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
Medical Devices Economic Profile
The medical devices and diagnostics subcluster includes companies that engineer, research, design, and
manufacture medical equipment used in the healthcare industry. The medical devices and diagnostics
subcluster consists of eight, six-digit North American Industry Classification System (NAICS) codes.
The nine-county region ranked 11th out of the 50 largest metro areas for medical devices and
diagnostics employment concentration in 2014. With direct employment in the medical devices and
diagnostics subcluster of about 10,500 employees, the region ranked eighth in absolute employment. About
84 percent of Colorado’s medical devices and diagnostics employees work in the nine-county region.
Medical Devices and Diagnostics Employment and Company Profile, 2014
Nine-County Region
United States
10,500
441,970
310
17,280
One-year direct employment growth, 2013-2014
1.9%
0.7%
Five-year direct employment growth, 2009-2014
5.4%
1.0%
Avg. annual direct employment growth, 2009-2014
1.1%
0.2%
Direct employment concentration
0.6%
0.3%
Direct employment, 2014
Number of direct companies, 2014
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014; Development Research Partners.
Medical Devices and Diagnostics Employment
The nine-county region’s medical
devices and diagnostics subcluster
employment (10,500 workers) rose 1.9
percent in 2014, compared with the
previous year’s level, adding roughly
200 new jobs over the same period.
About 310 medical devices and
diagnostics companies operated in the
nine-county region in 2014.
Approximately 66 percent of the region’s
medical devices and diagnostics
companies employed fewer than 10
workers, while 2.5 percent employed
250 or more.
Bioscience-Medical Devices and Diagnostics
Number of Employees Growth Rate
10%
5%
0%
-5%
2009
2010
2011
2012
Nine-County Region
2013
United States
2014
Avg Annual
Growth
Source: Dun & Bradstreet, Inc., Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 2
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
Medical Devices & Diagnostics Employment by County, 2014
Douglas
7.6%
Denver
4.4%
Adams Weld
1.8% 1.8%
Broomfield
0.9%
Larimer
11.0%
Boulder
30.2%
Arapahoe
12.9%
Jefferson
29.4%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Medical Devices & Diagnostics Employment by Industry
Sector, 2014
Diagnostic
substances mfg.
2.2%
Dental
equipment &
supplies
4.4%
Other medical
devices mfg.
0.2%
Surgical &
medical
instruments mfg.
70.8%
Electromedical
equipment mfg.
9.7%
Analytical
instruments mfg.
12.7%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Major Medical Devices and Diagnostics Companies
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AlloSource
www.allosource.org
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nSpire Health, Inc.
www.nspirehealth.com
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Baxter Corporation
www.baxter.com
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Particle Measuring Systems
www.pmeasuring.com
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Biodesix
www.biodesix.com
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Sharklet Technologies, Inc.
www.sharklet.com
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Cochlear Americas
www.cochlear.com/us
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SomaLogic, Inc.
www.somalogic.com
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ConMed Corporation
www.conmed.com
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Sorin Group USA, Inc.
www.sorin.com
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Covidien
www.covidien.com
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Sparton Medical Systems
www.sparton.com
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GE Healthcare
www3.gehealthcare.com
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Surefire Medical Inc.
http://surefiremedical.com
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Hach Company
www.hach.com
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Terumo BCT, Inc.
www.terumobct.com
Metro Denver Economic Development Corporation | January 29, 2015 | Page 3
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
Major Medical Devices and Diagnostics Companies Cont’d
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Lake Region Medical (formerly Accellent)
www.lakeregionmedical.com
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Medtronic Surgical Technologies
www.medtronic.com
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Water Pik, Inc.
www.waterpik.com
Pharmaceuticals and Biotechnology Economic Profile
Pharmaceutical companies manufacture, research, and develop pharmaceutical drugs. Biotechnology
companies utilize cellular and molecular biology and medicinal chemistry to develop and commercialize
therapeutic medicines. The pharmaceuticals and biotechnology subcluster consists of four, six-digit North
American Industry Classification System (NAICS) codes.
With direct employment in the pharmaceuticals and biotechnology subcluster of about 4,620
workers, the nine-county region ranked 15th in absolute employment of the 50 largest metro areas
in 2014. The region ranked 25th for pharmaceuticals and biotechnology employment concentration. About 95
percent of Colorado’s pharmaceuticals and biotechnology employees work in the nine-county region.
Pharmaceuticals and Biotechnology Employment and Company Profile, 2014
Nine-County Region
United States
4,620
451,540
290
17,260
One-year direct employment growth, 2013-2014
-4.3%
2.3%
Five-year direct employment growth, 2009-2014
-12.5%
-0.1%
-2.6%
0.0%
0.2%
0.3%
Direct employment, 2014
Number of direct companies, 2014
Avg. annual direct employment growth, 2009-2014
Direct employment concentration
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014; Development Research Partners.
Pharmaceuticals and Biotechnology Employment
The nine-county region’s
pharmaceuticals and biotechnology
subcluster employment (4,620 workers)
declined 4.3 percent in 2014, compared
with the previous year’s level. National
employment levels rose 2.3 percent
over-the-year. While the pharmaceuticals
and biotechnology subcluster expanded
in 2012 and 2013 after two-consecutive
years of employment declines, a
challenging regulatory environment and
company-wide consolidations contributed
to employment declines in 2014.
About 290 pharmaceuticals and
biotechnology companies operated in the
nine-county region in 2014. Nearly 75
percent of the region’s pharmaceuticals
and biotechnology companies employed
fewer than 10 people, while 1 percent
employed 250 or more.
Bioscience - Pharmaceuticals and Biotechnology
Number of Employees Growth Rate
5%
0%
-5%
-10%
-15%
2009
2010
2011
2012
Nine-County Region
2013
United States
2014
Avg Annual
Growth
Source: Dun & Bradstreet, Inc., Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 4
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
Pharmaceuticals & Biotechnology Employment by County,
2014
Denver
9.4%
Adams
Jefferson
5.8%
5.3% Arapahoe Weld
1.7%
3.4%
Douglas
1.3%
Broomfield
15.4%
Boulder
33.3%
Larimer
24.3%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Pharmaceuticals & Biotechnology Employment by Industry
Sector, 2014
Biological product
mfg.
5.0%
Medicinal &
botanical mfg.
9.8%
Pharmaceutical
preparation mfg.
53.4%
Biotechnology
research &
development
31.8%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Major Pharmaceuticals and Biotechnology Companies
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Amgen Inc.
www.amgen.com
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Heska Corporation
www.heska.com
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Array BioPharma Inc.
www.arraybiopharma.com
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Hospira, Inc.
www.hospira.com
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Colorado Serum Company
www.colorado-serum.com
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Sandoz, Inc.
www.sandoz.com
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Corden Pharma Colorado Inc.
www.cordenpharma.com
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Spectrum Pharmaceuticals
www.sppirx.com
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GlobeImmune, Inc.
www.globeimmune.com
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TOLMAR, Inc.
www.tolmar.com
2014 Industry Highlights
Bioscience Research and Innovation Assets
One of the largest bioscience developments in the country, the Fitzsimons Life Science District and the
adjacent Anschutz Medical Campus are the center of Colorado’s bioscience community. When complete, the
$5.2 billion project encompassing 578 total acres and more than six million square feet of new real estate will
be a world-class scientific community offering cutting-edge space, services, and support to more than 43,000
Metro Denver Economic Development Corporation | January 29, 2015 | Page 5
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
bioscience professionals. Located just 15 minutes from Denver International Airport, the 184-acre Life Science
District offers life science companies the opportunity to locate in pre-built laboratories and furnished office
space or build-to-suit space. The BioBusiness Incubator and Accelerator facilities located within the 184-acre
park are home to about 40 bioscience companies, offering turnkey facilities for research, business
development, and product commercialization. In 2014, the Fitzsimons Redevelopment Authority and the
University of Colorado’s Bioengineering program broke ground on a new Bioscience 2 building at the Anschutz
Medical campus. The 112,000-square-foot building will include the Bioengineering program, accommodate
approximately 250 students, and will provide space for potential bioscience startup companies to grow. The
building is slated for August 2015.
The Anschutz Medical Campus also includes facilities for University Physicians, Inc., and the Schools of
Medicine, Nursing, Dental Medicine, Pharmacy, and Public Health. According to CU-Denver, CU Anschutz
contributed more than $2.6 billion to Colorado’s economy between 2012 and 2013 and employment increased
by 4,200 jobs over this period of time. Located adjacent to the Anschutz Medical Campus is the U.S.
Department of Veterans Affairs (VA) Eastern Colorado Healthcare System hospital and facilities. Construction
began in 2011 on the new VA Hospital that will replace the existing facility in Denver and will be completed in
2016. The award-winning Children’s Hospital Colorado is also adjacent to the campus.
Northern Colorado also supports a growing network of accelerators to foster startups and established
companies conducting life science research and development and associated business operations. Notably,
CSU’s Research Innovation Center (RIC) is a hybrid academic research facility and bioscience incubator and
includes a state-of-the-art, wet research laboratory capable of manufacturing clinical-grade vaccines or
biologics. The RIC works closely with the area’s other primary startup incubator, Innosphere, which is the only
innovation-based startup accelerator in Northern Colorado and provides assistance with raising capital and
networking opportunities for high-impact scientific and technology startup companies. Innosphere supports
bioscience, technology, and cleantech ventures through its FasTrac TechVenture entrepreneurial program
developed by the Ewing Marion Kauffman Foundation. In 2013, Innosphere startups raised $35 million in risk
capital and created 300 high wage jobs in Colorado.
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Northern Colorado supports the region’s bioscience hub through the efforts of CSU, the University of
Colorado Health (UCHealth), the cities of Fort Collins and Loveland, and private enterprises. UCHealth
has increased its capacity for clinical trials for national and local bioscience companies and has
developed its own innovation capacity for surgical techniques and advancements in cancer treatment
for animals.
CSU, Poudre Valley Hospital, and the Medical Center of the Rockies signed a memorandum of
understanding in 2014 to combine resources and personnel to bring CSU research to patients faster
and more efficiently. The entities will collaborate in several areas, including clinical trials, funding
opportunities, technology transfer, employee education/training, and marketing.
CSU’s Flint Animal Cancer Center is an internationally recognized leader in clinical veterinary oncology
and cancer research and is a flagship program for CSU’s College of Veterinary Medicine and Biomedical
Sciences through its translational research.
Key Company Announcements
The nine-county region is a key location for private bioscience companies to grow and thrive. Notable
company announcements in 2014 included:
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AntriaBio Inc., a biopharmaceutical research and development company, relocated its company
operations from Menlo Park, Calif. to Louisville. The company intends to revive a basal insulin product
that was originally being developed by Fort Collins-based PR Pharmaceuticals Inc. With the relocation,
the company expects to hire up to 30 new employees at the Louisville site over the next year.
Medical device manufacturer Terumo BCT completed construction of its new worldwide headquarters
and manufacturing operations in Lakewood. The expansion will add up to 250 jobs to its existing
2,000 employee workforce. Terumo BCT specializes in blood transfusion, collection, and processing
equipment.
Nordson Corp. broke ground on a new state-of-the art manufacturing facility in Loveland. The new
facility will meet growing demand for the company’s Value Plastics brand used for bioscience and
medical markets. The 115,000-square-foot facility includes full clean-room molding, assembly,
packaging, and inventory storage capabilities and is slated for completion in early 2015.
Vention Medical expanded its design and development operations in Boulder. The 6,000-square-foot
expansion will allow the company to accelerate product development for partner companies in
interventional and minimally invasive surgical markets.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 6
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
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Ampio Pharmaceuticals, Inc. opened its new headquarters, manufacturing, and research facility in
unincorporated Arapahoe County. The new facility will accommodate the company’s production of
Ampion™ and could manufacture and package 10 million doses per year for the treatment of
osteoarthritis. The facility also includes a state-of-the-art molecular biology and analytical research
laboratories.
Agricultural Biotechnology Announcements
Northern Colorado is a growing center for agricultural biotechnology business activity.
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Cargill Specialty Seeds & Oils began a $10 million expansion of its Northern Colorado operations. The
Fort Collins development includes a 38,000-square-foot expansion of the existing greenhouse, seed
storage, and offices. The 30-acre facility employs more than 40 employees who develop and cultivate
seed and crops that can be turned into stable, heart-healthy oils for cooking.
Greeley-based Loveland Products signed an agreement with Australia-based CH Biotech. Under the
agreement, Loveland Products will have the right to obtain exclusive, worldwide distribution rights to
CH Biotech's existing plant health technologies as well as access to new product and technology
opportunities.
Innovative Technologies and Regulatory Approvals
A number of the region’s bioscience companies developed cutting-edge technologies and received significant
regulatory approvals to accelerate the success of new products.
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Boulder-based JustRight Surgical LLC received U.S. Food and Drug Administration (FDA) clearance to
sell a small stapler device designed for pediatric surgery. The FDA approval comes with $10 million in
expected investments from current investors, allowing for the addition of 20 salespeople over the next
year in the Boulder offices.
Boulder-based Array BioPharma and Cambridge, Mass.-based Biogen Idec, Inc. partnered to develop a
novel autoimmune and inflammatory disease drug. Array intends to use its screening technology to
identify target illnesses and ways to treat them using kinase inhibitors, while Biogen will fund
research, support clinical development, and worldwide commercial development.
Boulder-based CBR International Corp., a biotech research group that helps clients research new
drugs and navigate the FDA approval process, aided San Diego, Calif.-based Mapp Biopharmaceuticals
Inc. in the experimental Ebola treatment ZMapp. CBR worked to analyze and test the drug to help
further the development of ZMapp.
Golden-based PharmaJet Inc. received FDA approval for its needle-free injectors for flu shots. The
approval allows individuals between the ages of 18 and 64 to receive the Afluria influenza vaccine
using the needle-free injection. The needleless injectors shoot a narrow stream of medicine through or
into a person’s skin, which removes the need for a needle and eliminates the chance of needle-stick
accidents. The new technology will be available for nearly 150 million people who receive the vaccine
each year.
Fort Collins-based KromaTiD launched its directional Genomic Hybridization (dGH) screening services.
The dGH assays are the only imaging assays capable of determining DNA sequence, location, and
orientation data in a single test. KromaTiD will allow researchers to identify new targets for designing
unique drug interventions for multiple human diseases and cancers.
The FDA approved Centennial-based Cochlear Americas’ one-of-a-kind Aqua+ accessory, the only
waterproof behind-the-ear solution for cochlear implant recipients. The device allows recipients to
swim underwater for up to two hours.
Industry Infrastructure Support
The region’s organizations and professionals foster growth and opportunity for the bioscience industry.
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The Colorado BioScience Association (CBSA) hosted the 2014 BioWest Conference and Expo in
Denver, attended by more than 300 industry leaders, government representatives, executives,
researchers, investors, and entrepreneurs. CBSA also partnered with PrIME Health Collaborative to
host the 2014 Digital Health Venture Showcase, a pre-event to the BioWest Conference. The event
featured a selection of curated and vetted proposals from top Colorado digital health companies. The
finalist companies competed for a share of $50,000 in prize money awarded by PrIME and the
Colorado Health Foundation.
The Colorado Office of Economic Development and International Trade (OEDIT) awarded its second
round of grants for the Advanced Industries Accelerator Programs. The programs will support key
Metro Denver Economic Development Corporation | January 29, 2015 | Page 7
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
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industries in Colorado, including bioscience and medical device manufacturers, by providing up to
$150,000 for Proof-of-Concept grants, up to $250,000 for Early-Stage Capital grants, and $15,000
matching grants for businesses looking to export to global markets.
The Denver Office of Economic Development offers the Denver Capital Matrix, a resource directory of
over 400 funding sources for small business and entrepreneurs including traditional bank lending,
venture capital firms, private equity firms, angel investors, mezzanine sources, and others that have
funded Colorado businesses.
The Innovation Center of the Rockies (ICR) collaborates with tech-transfer offices including the
University of Colorado, the University of Denver, Colorado School of Mines, CSU, and the University of
Wyoming to create one of the largest entrepreneurial networks in the nation. ICR also works closely
with CSU Ventures to accelerate the creation of new businesses and continue building the state’s
entrepreneurial ecosystem.
Cross-Cluster Convergence
The nine-county region is characterized by its network of collaboration, innovation centers, and unique assets
that lead to cross-cluster convergence. The bioscience industry combines these regional assets to strengthen
partnerships and enhance growth opportunities across industries such as digital health, IT-software, and
aerospace.
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Metro Denver is an emerging digital health community nationally. Founded in July 2012 by the Denver
South Economic Development Partnership and Innovation Pavilion, PrIME Health Collaborative is a
growing statewide community of 700+ health care executives, physicians, technologists, academics,
entrepreneurs, and investors dedicated to improving health and lowering healthcare costs through the
commercialization of digital health technologies. The Collaborative is a resource ecosystem for Digital
Health—the convergence of the digital and genetics revolutions with bioscience, healthcare and
wellness, and information technology-software. In 2014, the Collaborative held a number of important
events showcasing the Digital Health Corridor, including a first-of-its kind $150,000 Digital Health
Challenge. More information at www.primehealthco.com/challenge.
Boulder-based Kindara launched Wink, a wireless fertility thermometer to help women easily record
their basal body temperature readings. Wink synchronizes with Bluetooth technology to the Kindara
fertility app on a user’s mobile devices and provides an integrated fertility charting experience.
Centennial-based AlloSource signed a Space Act Agreement with the National Aeronautics and Space
Administration (NASA) and the Jet Propulsion Laboratory (JPL) to collaborate on microbial research.
AlloSource will leverage technologies developed by NASA/JPL for assembly and launch operations of
various Mars missions, including rapid molecular microbial burden measurement and genetic inventory
cataloging to advance microbial research in tissue processing.
Venture Capital and Funding Awards
A number of the region’s bioscience companies received significant awards to advance new technologies and
support further research and product development.
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Denver-based UrgentRx secured $17.5 million in private financing to support distribution opportunities
and a national marketing campaign for its fast-acting, over-the-counter medications. UrgentRx
medications treat allergy attacks, headaches, aches and pains, heartburn, upset stomach, and provide
heart attack first aid.
Boulder-based SomaLogic Inc. raised $16.5 million in new funding to continue building a version of its
proteomics assay for Novartis to use for its drug discovery and development efforts.
Boulder-based Sinopsys Surgical received $8.3 million in private equity financing for its new sinusitis
drug-device treatment. The company is developing a technique to repurpose the tear duct to drain
into the sinuses as a way to relieve chronic sinusitis.
Batelle Memorial Institute awarded CSU researchers $2 million to design a vaccine to protect
individuals from the Ebola virus. CSU’s Biopharmaceutical Manufacturing and Academic Resource
Center will develop a replicon vaccine platform containing a non-infection Ebola antigen.
Boulder-based BiOptix received $1.4 million in private equity financing to expand sales and marketing
efforts, and increase manufacturing to meet growing customer demand. The company will use the
funding to market its Enhanced Surface Plasmon Resonance technology platform for the detection of
molecular interactions.
dBMEDx, a wireless medical device company, secured $1.3 million to commercialize its BBS
Revolution™ device. The device is an automated bladder-volume measurement technology used for
the management of in-hospital urinary catheters to avoid catheter-associated urinary tract infections.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 8
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
Research and Development Awards
Research and development funding at both the state and federal government levels supported new
technologies and innovation for the region’s bioscience companies and research institutes.
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Philanthropists John and Leslie Malone announced a $42.5 million gift to CSU to develop regenerative
medical therapies for animals and humans. The donation will launch the CSU Institute for Biologic
Translational Therapies to investigate next-generation remedies based on living cells and their
products, including patient-derived stem cells, to treat musculoskeletal disease and other ailments.
Colorado State veterinarians are expert at analyzing medical treatments for animal patients, then
providing knowledge gained to boost human medical advancements; the progression is known as
translational medicine and is successful because of similarities in animal and human physiology and
disease.
The National Institutes of Health (NIH) awarded associate CU-Boulder professor Dr. Amy Palmer a
coveted Director’s Pioneer Award. The five-year, $3.7 million grant is awarded to researchers showing
exceptional creativity in solving biomedical and behavioral research problems. The funding will be
used to develop a new technology to determine if zinc is a regulator of protein function in humans.
CSU assistant professor Brian McNaughton received a $1.5 million NIH research grant to develop
synthetic proteins that eliminate disease-causing components in cells that do not respond to
traditional drug treatments. McNaughton’s technique utilizes green fluorescent protein originally
isolated from a luminescent Pacific jellyfish, which have the potential of developing into new
treatments for cancers and HIV.
The National Institute of Allergy and Infectious Diseases awarded Boulder-based InDevR $2.9 million
to expand its application of its new vaccine potency assay to pandemic influenza vaccines. The
company recently launched Influenza Titer on Chip (Flu-ToC™) as a service to vaccine producers for
rapid evaluation of seasonal flu vaccine potency, including the deadly avian H5N1 and H7N9 viruses.
Corgenix Medical Corp. received a $2.9 million NIH grant to develop a quick diagnostic test for the
Ebola virus. The company intends to collaborate with Viral Hemorrhagic Fever Consortium and will
develop a test for clinics and field labs that can return results within minutes.
The Bill and Melinda Gates Foundation awarded CSU a $224,000 grant to develop a diagnostic breath
test for tuberculosis (TB). The breath-test project would transform TB testing and will provide
improved control over the infectious disease. The research will be done at CSU’s Biosafety Level-3
facility where researchers will identify unique chemical markers for early TB detection.
Boulder-based MBio Diagnostics Inc. was awarded a three-year U.S. Army contract to develop a
portable cartridge reader for malaria diagnosis. Under the contract, MBio will develop a low-cost,
diagnostic device for malaria with enhanced sensitivity, quantitation capabilities, and automated data
capture and transmission using the company’s planar waveguide LightDeck technology.
Bioscience Grants and Incentive Programs
The State of Colorado has launched a number of programs in recent years to support early-stage and growth
companies in the bioscience cluster.
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•
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Legislation passed in 2014 allows investors to receive tax credits for investing in early-stage,
advanced industry companies. House Bill 1012 (2014) allows qualified investors to claim tax credits
worth 25 percent of their investment in the company if they do not own more than 30 percent of the
business before the investment was made or 50 percent after, up to a maximum of $50,000 in tax
credits.
In fiscal year 2013, the Bioscience Discovery Evaluation Grant Program (BDEGP) awarded more than
$4 million in grants to 34 projects. Since the program’s inception in 2006, 220 grants totaling more
than $27 million were distributed to research institutions and early-stage bioscience companies.
Formed in 2009 through the BDEGP, CID4 accelerates life science discoveries and bridges the gap
between research and successful product developments. The Institute serves universities, bioscience
companies, academic groups, and professional associations by providing seed funding, active
management, investor connections, and strategic consulting. When it launched, CID4 received $4.75
million in total funding for grants from the state of Colorado and the Fitzsimons Redevelopment
Authority. As of 2014, CID4 had eight companies in its Project Portfolio who have raised over $25
million in additional operating funds.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 9
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
Bioscience Workforce Profile
Many companies choose locations because of the available workforce. With nearly half of the nine-county
region’s 3.6 million residents under the age of 35, employers can draw from a large, young, highly educated,
and productive workforce. Of the region’s adult population, 41.2 percent are college graduates and 90.5
percent have graduated from high school. The state has the nation’s second-most highly educated workforce
as measured by the percentage of residents with a bachelor’s degree or higher.
The attractiveness of the region draws new residents through migration. The region’s population is expected
to grow 53.3 percent from 2010 to 2040, driving a 36.3 percent increase in the region’s labor force over the
same period. It is important to note the changing composition of the workforce supply as the baby boomers
begin to retire, which will pose implications for businesses whose employee pool includes significant numbers
of these workers.
Educational Attainment of Metro Denver and Northern
Colorado's Population Age 25 and Older
Less than 9th
Grade
3.9%
Graduate or
Professional
Degree
15.3%
9th to 12th Grade,
No Diploma
5.6%
High School
Graduate
(includes
equivalency)
20.0%
Bachelor’s
Degree
25.9%
Some College,
No Degree
21.7%
Associate Degree
7.7%
Source: U.S. Census Bureau, 2013 American Community Survey.
3,000,000
Metro Denver and Northern Colorado's Labor Force
Projections by Age
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2010
16-24
2020
25-34
35-44
2030
45-54
55-64
2040
65+
Source: Colorado Division of Local Government, State Demography Office.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 10
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
Medical Devices and Diagnostics Workforce Profile
Age Distribution
The nine-county region’s medical devices
and diagnostics subcluster employs 10,500
people and includes a large pool of
talented, well-educated, and highly skilled
workers. Compared with the age
distribution across all industries, the
medical devices and diagnostics subcluster
has a larger share of employees between
the ages of 35 and 64 years old.
Metro Denver and Northern Colorado's Distribution of
Employment by Age
35%
30%
25%
20%
15%
10%
The medical devices and diagnostics
workforce supply consists of four main
5%
components: those currently working in
the industry; those doing a similar type of
0%
16-24
25-34
35-44
45-54
55-64
65+
job in some other industry; the
Medical
Devices
&
Diagnostics
All
Industries
unemployed; and those currently in the
Source: Provided by Arapahoe/Douglas Works! QCEW Employees, Non-QCEW Employees, Self Employed, &
education pipeline. The Metro Denver and
Extended Proprietors - EMSI 2014.3 Class of Worker.
Northern Colorado Occupation & Salary
Profile below includes the 10 largest medical devices and diagnostics occupations in the region. For these 10
largest occupations, the chart details the total number of workers employed in that occupation across all
industries, the number of available applicants that would like to be working in that occupation, the number of
recent graduates that are qualified for that occupation, and the median and sample percentile annual salaries.
Wages
The 2013 average annual salary for medical devices and diagnostics subcluster workers in the nine-county
region was $72,290, compared with $77,550 nationwide. Given this average salary, the region’s medical devices
and diagnostics payroll reached nearly $745 million in 2013.
Metro Denver & Northern Colorado Medical Devices & Diagnostics Occupation & Salary Profile, 2014
10 Largest Medical Devices and
Diagnostics Occupations
in Metro Denver and Northern
Colorado
1. Electromechanical
equipment assemblers
2. Dental laboratory
technicians
3. Electrical & electronic
equipment assemblers
4. Industrial engineers
5. Software developers,
systems software
6. General & operations
managers
7. First-line supervisors of
production & operating
workers
8. Inspectors, testers,
sorters, samplers, &
weighers
9. Mechanical engineers
10. Machinists
Total
Working Number of
Across All Available
Industries Applicants
(2014)
(2014)
Number of
Graduates
(2013)
Median
Salary
10th
Percentile
Salary
25th
Percentile
Salary
75th
90th
Percentile Percentile
Salary
Salary
1,897
59
6
$32,681
$27,983
$29,902
$37,425
$42,103
568
10
0
$38,240
$24,409
$27,971
$46,362
$56,069
2,844
2,739
210
98
9
11
$31,030
$88,556
$20,057
$58,378
$24,030
$72,291
$39,167 $50,314
$108,106 $128,021
10,055
182
630
$97,129
$64,202
$78,914
$118,677 $140,885
32,111
1,554
5,881
$105,579
$53,735
$73,020
$161,855 $233,791
4,951
353
1
$57,240
$35,439
$45,336
4,806
4,951
3,923
167
235
164
0
454
45
$41,022
$81,844
$43,182
$26,379
$51,191
$25,849
$32,386
$64,329
$33,612
$71,175
$90,007
$51,170 $57,800
$105,084 $131,957
$53,106 $60,808
Notes: The number of available applicants is a point-in-time measurement of the number of people who have registered in Colorado’s
workforce development system’s statewide database, Connecting Colorado, as being able and available to work in a particular occupation.
Results should be interpreted with caution since registration in Connecting Colorado is self-reported. In addition, the skills rubric may assign
up to four occupation codes for each registrant. Therefore, the number of available applicants could be inflated. Source: Provided by
Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2014.3 Class of Worker.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 11
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
Pharmaceuticals and Biotechnology Workforce Profile
Age Distribution
The nine-county region’s pharmaceuticals
and biotechnology subcluster employs 4,620
people and includes a large pool of talented,
well-educated, and highly skilled workers.
Compared with the age distribution across
all industries, the pharmaceuticals and
biotechnology subcluster has a larger share
of employees between the ages of 35 and
54 years old.
Metro Denver and Northern Colorado's Distribution of
Employment by Age
35%
30%
25%
20%
15%
The pharmaceuticals and biotechnology
10%
workforce supply consists of four main
5%
components: those currently working in the
industry; those doing a similar type of job in
0%
some other industry; the unemployed; and
16-24
25-34
35-44
45-54
55-64
65+
those currently in the education pipeline.
Pharmaceuticals & Biotechnology
All Industries
Source: Provided by Arapahoe/Douglas Works! QCEW Employees, Non-QCEW Employees, Self Employed, &
The Metro Denver and Northern Colorado
Extended Proprietors - EMSI 2014.3 Class of Worker.
Occupation & Salary Profile below includes
the 10 largest pharmaceuticals and biotechnology occupations in the region. For these 10 largest occupations,
the chart details the total number of workers employed in that occupation across all industries, the number of
available applicants that would like to be working in that occupation, the number of recent graduates that are
qualified for that occupation, and the median and sample percentile annual salaries.
Wages
Total nine-county payroll in the pharmaceuticals and biotechnology subcluster exceeded $469 million in 2013.
The 2013 average annual salary for pharmaceuticals and biotechnology employees in the region was $97,190,
compared with the national average of $119,890.
Metro Denver and Northern Colorado Pharmaceuticals and Biotechnology Occupation & Salary
Profile, 2014
10 Largest Pharmaceuticals and
Biotechnology Occupations
in Metro Denver and Northern
Colorado
1. Chemists
2. Business operations
specialists, all other
3. Packaging & filling machine
operators & tenders
4. Biological technicians
5. Natural sciences managers
6. Medical scientists, except
epidemiologists
7. Chemical equipment
operators & tenders
8. Inspectors, testers,
sorters, samplers, &
weighers
9. Secretaries &
administrative assistants,
except legal, medical, &
executive
10. Biochemists &
biophysicists
Total
Working Number of
Across All Available Number of
Industries Applicants Graduates
(2014)
(2014)
(2013)
Median
Salary
10th
Percentile
Salary
25th
Percentile
Salary
75th
90th
Percentile Percentile
Salary
Salary
1,397
115
239
$71,083
$41,948
$52,592
$96,330 $121,642
32,981
781
77
$69,929
$36,067
$50,034
$92,618 $120,078
3,012
2,138
1,102
137
104
30
0
0
2,692
$30,883
$43,689
$125,714
$18,785
$31,109
$89,031
$21,330
$35,484
$108,297
$44,659 $58,613
$56,131 $68,580
$149,668 $192,015
1,170
37
654
$56,718
$38,521
$44,798
$77,868 $106,869
466
21
0
$48,319
$28,268
$35,807
$54,865
$61,336
4,806
167
0
$41,022
$26,379
$32,386
$51,170
$57,800
49,635
661
71
$36,024
$23,579
$29,046
$44,001
$51,969
434
28
138
$63,130
$40,921
$49,247
$94,116 $161,850
Notes: The number of available applicants is a point-in-time measurement of the number of people who have registered in Colorado’s
workforce development system’s statewide database, Connecting Colorado, as being able and available to work in a particular occupation.
Results should be interpreted with caution since registration in Connecting Colorado is self-reported. In addition, the skills rubric may assign
up to four occupation codes for each registrant. Therefore, the number of available applicants could be inflated. Source: Provided by
Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2014.3 Class of Worker.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 12
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
Education & Training
Colorado’s higher education system provides an excellent support system for businesses in the region. There
are 28 public higher education institutions in Colorado, of which seven four‐year and six two‐year public
institutions offering comprehensive curricula are located in the nine‐county region. In addition, there are more
than 100 private and religious accredited institutions and nearly 340 private occupational and technical
schools offering courses in dozens of program areas throughout the state. Although not exhaustive, a list of
the major, accredited educational institutions with the greatest number of graduates for each of the 10 largest
bioscience occupations in the nine-county region are included below. A directory of all higher education
institutions with corresponding websites may be accessed via http://highered.colorado.gov.
•
Colorado School of Mines
www.mines.edu
•
Jones International University
www.jiu.edu
•
University of Colorado Denver
www.ucdenver.edu
•
Colorado State University
www.colostate.edu
•
Metropolitan State University of
Denver
www.msudenver.edu
•
University of Colorado Denver
School of Medicine
www.medschool.ucdenver.edu
•
Colorado State University Global
Campus
www.colostate.edu
•
Regis University
www.regis.edu
•
University of Denver
www.du.edu
•
DeVry University – Colorado
www.devry.edu
•
University of Colorado Boulder
www.colorado.edu
•
University of Northern Colorado
www.unco.edu
Key Reasons for Bioscience Companies to Locate in the Nine-County
Region
The region is an emerging bioscience location offering:
1. The ability to recruit and retain technical and scientific employees and entrepreneurial talent
•
Colorado has 10 higher education institutions with bioscience programs. Biological sciences graduate
programs at the University of Colorado Boulder (CU-Boulder), Colorado State University (CSU), and
the University of Colorado Denver ranked within the nation's top 100 in 2014. (U.S. News & World
Report, 2014)
•
Colorado ranked ninth in the number of science and engineering graduate students per 1,000
individuals ages 25 to 34 years old in 2011. (National Science Foundation, 2014)
•
Colorado ranked fourth in the number of scientists and engineers as a share of all occupations in
2012. (National Science Foundation, 2014)
•
The U.S. Department of Commerce's United States Patent and Trademark Office located one of four
new satellite offices in Denver due to the state's expansive culture of innovation and entrepreneurism.
(U.S. Patent and Trademark Office, 2014)
•
CU-Boulder, CSU, and the University of Denver ranked among the “Top 50 Schools for Startups” in the
U.S. (Forbes, 2014)
•
Metro Denver ranked 11th among U.S. life science clusters and received top 10 rankings in life science
employment concentration, establishment concentration, and employment growth. (Jones Lang
LaSalle, 2014)
•
Colorado ranked fourth in the 2014 State Technology and Science Index. Colorado received top-10
rankings in all five categories, and received its highest individual scores in research and development
capacity (third) and technology and science workforce (sixth). (Milken Institute, 2014)
•
Colorado ranked among the second tier of bioscience states and the state ranked among the top tier
in bioscience-related venture capital investments since 2009, totaling $1.1 billion. (Battelle Memorial
Institute, 2014)
•
Metro Denver ranked as the ninth‐best metro area for science, technology, engineering, and
mathematics (STEM) graduates in 2014. STEM jobs in Metro Denver represented 8.2 percent of all
occupations and the area’s annual mean wage for STEM jobs was $84,380. (NerdWallet, 2014)
2. Affordable operating costs
•
Bioscience companies can recruit affordable, productive employees as the nine-county average wage
for bioscience workers is slightly below the national average.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 13
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
•
The nine-county region offers a variety of real estate opportunities for bioscience companies, ranging
from fully furnished executive suites to build-to-suit laboratories and office space.
3. A pro-business environment and competitive tax structure
•
Colorado's simplified corporate income tax structure based on single-factor apportionment allows
companies to pay taxes based solely on their sales in the state. Along with few regulatory burdens,
Colorado's corporate income tax rate of 4.63 percent is one of the lowest and most competitive tax
structures in the nation. (State of Colorado; The Tax Foundation)
•
Manufacturing equipment used in clean room operations is exempt from state sales tax. (Exemption
clarified in Colorado House Bill 1277 (2007))
•
Colorado has the nation’s ninth-best tax climate for entrepreneurship and small business. (Small
Business & Entrepreneurship Council, 2014)
•
Forbes ranked Metro Denver fourth among the “Best Places for Business and Careers” in 2014. Four
other Colorado metropolitan areas were included on the list. The Fort Collins metro area ranked fifth
overall, Greeley ranked 20th, Boulder ranked 23rd, and Colorado Springs ranked 29th. (Forbes, 2014)
•
Colorado ranked as the No. 8 small-business-friendly state in the nation. Fort Collins (24th) and
Denver (28th) ranked among 84 cities in the country. (Thumbtack.com, 2014; Ewing Marion Kauffman
Foundation, 2014)
4. Access to financial resources to fund research and development
•
Two grant programs were created by the Colorado Legislature to grow and expand the region’s
bioscience industry:
•
The Clean Technology Discovery Evaluation Grant Program established a pool of funds to support
research and development of new products and technologies, to support early-stage companies,
and to develop infrastructure. This program could generate as much as $2 million each year in
new seed money for the bioscience industry.
•
The Bioscience Discovery Evaluation Grant Program was created to grow and expand bioscience
research and accelerate the development of new products and services. The program has created
45 new Colorado companies resulting in 381 direct jobs, an additional $418 million in grants and
investments to further commercialize these bioscience technologies, and awarded a total of 220
grants totaling more than $27 million to research institutions and early-stage bioscience
companies. (Colorado Office of Economic Development and International Trade, 2013)
•
Colorado offers several public and private sources of business funding including the Certified Capital
Companies Program, the Colorado Venture Capital Authority, and Colorado Capital Access. (Contact
the Colorado Office of Economic Development and International Trade for more information.)
•
The nine-county region has four venture firms currently investing in bioscience: Boulder Ventures,
Lightstone Ventures, Morgenthaler Ventures, and Tango/HCV.
•
Colorado ranked fifth in the nation for funds raised per worker from the Small Business Innovation
Research (SBIR) grant program. The state received $25.82 SBIR grants per worker compared with the
U.S. average of $11.15. (U.S. Small Business Administration, 2014; U.S. Bureau of Labor Statistics,
2014)
•
CSU research expenditures reached $313 million in fiscal year 2013 and was the sixth consecutive
year that research dollars exceeded $300 million, indicating a high level of innovation.
•
The University of Colorado system ranked 10th among the nation’s public institutions for science and
engineering research and development expenditures totaling $800 million in fiscal year 2012. The
university also ranked fourth for federally funded research expenditures. (National Science
Foundation, 2014)
•
The University of Colorado ranked among the nation’s top 25 institutions in total NIH funding totaling
$162.8 million in fiscal year 2013. (National Institutes of Health, 2014)
5. Business organizations and public policy programs designed to encourage industry growth
•
The Advanced Industries (AI) Accelerator Programs were created in 2013 to promote growth and
sustainability in Colorado’s advanced industries including advanced manufacturing, aerospace,
bioscience, electronics, energy and natural resources, infrastructure engineering, and technology and
information. The Colorado Office of Economic Development and International Trade offers Proof of
Concept, Early-Stage Capital & Retention, Infrastructure Funding, and AI Exports grants. Since
inception, the programs have awarded 67 grants totaling $8.2 million to support these critical
industries in their various phases of growth. (The Colorado Office of Economic Development and
International Trade, 2014)
Metro Denver Economic Development Corporation | January 29, 2015 | Page 14
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
•
•
Startup Colorado is a regional initiative to increase the breadth and depth of the entrepreneurial
ecosystem across Colorado’s Front Range. Launched in 2011, the initiative focuses on improving
access to entrepreneurial education, encouraging new company creation, increasing connections
among entrepreneurs and mentors, and building a more vibrant entrepreneurial community. (Startup
Colorado, 2014)
The Colorado Innovation Network is a catalyst for economic prosperity through innovation by
partnering with government, business, and civil society to foster collaboration around global ideas,
talent, capital, and the entrepreneurial spirit.
Bioscience Industry Cluster Definition
NAICS Code*
Medical Devices
325413
333249
(P)
334510
334516
334517
339112
339113
339113
NAICS Description
and Diagnostics
In-vitro diagnostic substance mfg.
Other industrial machinery mfg.
Electromedical & electrotherapeutic apparatus
mfg.
Analytical laboratory instrument mfg.
Irradiation apparatus mfg.
Surgical & medical instrument mfg.
Surgical appliance & supplies mfg.
Surgical appliance & supplies mfg.
SIC Code
SIC Description
2835
3559-9922
3845
Diagnostic substances
Pharmaceutical machinery
Electromedical equipment
3826
3844
3841
3821
3842
Analytical instruments
X-ray apparatus & tubes
Surgical & medical instruments
Laboratory apparatus & furniture
Orthopedics, prosthetics, & surgical
appl.
Dental equipment & supplies
339114
Dental equip. & supplies mfg.
3843
Pharmaceuticals
325411
325412
325414
and Biotechnology
Medicinal & botanical mfg.
Pharmaceutical preparation mfg.
Biological product (except diagnostic) mfg.
2833
2834
2836
541711
541711
541711
Research & development in biotechnology
Research & development in biotechnology
Research & development in biotechnology
8731-01
8731-9902
8733-01
Medicinals & botanicals
Pharmaceutical preparations
Biological products except
diagnostic
Biological research
Medical research (commercial)
Noncommercial biological research
org.
*(P) indicates that only part of the NAICS industry category is represented in the industry cluster definition.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 15
BIOSCIENCE: Metro Denver and Northern Colorado Industry Cluster Profile
Bioscience Industry Cluster Relationships
Technologies
Bioinformatics
Biopharma
Genetic
Engineering
Nanotechnology
Nutraceuticals
Client Industries
Support Industries
Agriculture
Broadcasting and
Telecommunications
Government
Hardware
Manufacturing
Software
Bioscience
Medical Devices & Diagnostics
Pharmaceuticals & Biotechnology
Agriculture
Healthcare
Consumers
Energy
Infrastructure
Fitzsimons Life Science District
Colorado Science + Technology Park at
Fitzsimons
Anschutz Medical Campus
Colorado BioScience Association
Colorado Photonics Industry
Association
Colorado State University
National Jewish Health
University of Colorado
Other Research Institutions
For additional information, contact us:
1445 Market Street
Denver, CO 80202-1790
303.620.8092
email: info@metrodenver.org
www.metrodenver.org
Prepared by Development Research Partners, Inc., www.DevelopmentResearch.net
Metro Denver Economic Development Corporation | January 29, 2015 | Page 16
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
Industry Overview
Colorado is uniquely positioned as a leader in the
balanced energy economy, with abundant fossil
fuels (coal, oil, and natural gas) and renewable
energy resources (solar, wind, and biofuels). The
state has a strong energy foundation that includes
fossil fuels and both renewable energy and energy
efficiency technologies, also known as cleantech. A
highly educated workforce, research universities,
federal laboratories, advanced policy initiatives,
and industry collaboration support Colorado’s
energy industry, attracting economic growth, job
creation, technology development, and innovation.
This report evaluates the energy industry in the
nine-county Metro Denver and Northern Colorado
region 1 in two subclusters: (1) cleantech and (2)
fossil fuels. With 50,260 energy workers in
approximately 3,020 companies in 2014, the
nine-county region continues to position itself as a
leader in energy activity. Combined, the 71,000 direct energy workers earning $6.4 billion in the state support
an additional 179,540 indirect workers earning $9.2 billion in all industries throughout the state. In total, the
energy industry in Colorado supports 250,540 workers in all industries earning $15.6 billion annually.
The fossil fuels subcluster includes companies involved in the extraction of naturally occurring fuels used to
produce energy as well as the generation, transmission, and distribution of energy resources. The cleantech
subcluster includes companies developing and delivering products and technologies across solar, wind,
biomass, and sustainable transportation sectors that improve operational performance, efficiency, or
productivity, while reducing energy costs and energy consumption.
It is often difficult to distinguish how an organization’s operations are divided between fossil fuels and
cleantech components. For example, research is a critical component of all energy industries, from oil and gas
to solar and wind energy. So that the two subclusters may be analyzed independently, all energy research
entities are included in the cleantech subcluster while all energy transmission and distribution activities are
included in the fossil fuels subcluster, even though a portion of the energy may be coming from renewable
resources.
Colorado’s fossil fuel extraction has traditionally taken place in western Colorado; however, many companies
have Front Range-refining and production facilities and corporate offices in Metro Denver. Like many other
recent oil and gas plays in the nation, advances in horizontal drilling and hydraulic fracturing techniques allow
for greater production in the Denver-Julesburg Basin and Niobrara formations along the Front Range, drawing
significant attention from oil and gas companies. These advances provide substantial economic benefits
including capital investment, high-wage job creation, and export possibilities.
Cleantech Economic Profile
The cleantech subcluster includes companies that produce and conserve energy using wind, solar, biomass,
fuel cells, hydroelectric resources, and green transportation technologies. Companies that manufacture
renewable energy equipment, storage, and power transformers, and businesses that provide engineering and
other support services are also included. The subcluster includes energy research companies that provide
laboratory testing, scientific and technical consulting services, and institutional research related to the
environment, natural resources, and energy. The cleantech subcluster consists of 29, six-digit North American
Industry Classification System (NAICS) codes.
The nine‐county Metro Denver and Northern Colorado region consists of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas,
Jefferson, Larimer, and Weld Counties.
1
Metro Denver Economic Development Corporation | January 29, 2015 | Page 1
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
The nine‐county region ranked fifth out of the 50 largest metro areas in cleantech employment
concentration in 2014. With direct employment of 19,920 workers, the region ranked sixth out of the 50
largest metro areas in absolute employment. About 85 percent of Colorado’s cleantech employment was
located in the region.
Cleantech Employment and Company Profile, 2014
Nine-County Region
United States
19,920
789,220
Number of direct companies, 2014
1,510
57,040
One-year direct employment growth, 2013-2014
5.9%
1.5%
Five-year direct employment growth, 2009-2014
22.5%
14.9%
Avg. annual direct employment growth, 2009-2014
4.1%
2.8%
Direct employment concentration
1.1%
0.5%
Direct employment, 2014
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014; Development Research Partners.
Cleantech Employment
The nine-county region’s cleantech
employment (19,920 workers) rose 5.9
percent in 2014 compared with the
previous year’s level, adding 1,110 new
jobs over the same period. National
employment levels also grew over-theyear, rising 1.5 percent and adding
11,950 jobs. Nearly 3 percent of the
nation’s cleantech employment is
located in the region. Between 2009
and 2014, the region’s cleantech
employment rose 22.5 percent
compared with 14.9 percent increase
nationwide. Cleantech companies
employed 1.1 percent of the state’s
total employment base, compared with
a 0.5 percent employment
concentration nationwide.
Energy - Cleantech
Number of Employees Growth Rate
10%
5%
0%
-5%
2009
2010
2011
2012
Nine-County Region
2013
United States
2014
Avg Annual
Growth
Source: Dun & Bradstreet, Inc., Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014.
About 1,510 cleantech companies
operated in the nine‐ county region in 2014, rising 6 percent over the prior year. Approximately 79 percent of
these companies employed fewer than 10 people, while 0.7 percent employed 250 or more.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 2
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
Cleantech Employment by County, 2014
Adams
4.9%
Douglas
3.5%
Broomfield
0.3%
Arapahoe
6.3%
Jefferson
32.9%
Weld
8.3%
Larimer
12.7%
Denver
13.2%
Boulder
18.0%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Cleantech Employment by Industry Sector, 2014
Research &
testing
laboratories
18.8%
Energy storage &
Solar power
Wind power
measuring
9.7%
8.5%
equipment
3.4%
Energy
generation,
distribution, &
regulation
systems
1.1%
Green
transportation
0.4%
Environmental &
scientific
consulting
services
24.7%
Regulation,
planning, &
conservation
33.5%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Cleantech Overview
The nine-county region’s cleantech industry fosters innovation, commercialization, and economic vitality
through collaboration between research universities, industry, educational institutions, and public agencies.
The Colorado Energy Research Collaboratory and the Colorado Cleantech Industry Association (CCIA) are two
examples of this collaboration.
The Collaboratory integrates cutting-edge research with the industry expertise to accelerate the transfer of
energy technologies into the marketplace through its four research centers: the Colorado Center for
Biorefining and Biofuels (C2B2), the Center for Revolutionary Solar Photoconversion (CRSP), the Center for
Research and Education in Wind (CREW), and the Carbon Management Center. Since its launch in 2007, the
Collaboratory has shown a 9:1 return on investment using state funding of nearly $6.3 million to leverage
federal and private-sector dollars totaling $56.2 million and has helped attract several companies to Colorado.
An industry association dedicated entirely to cleantech, the CCIA, provides advocacy, capacity building, and
education and training to the cleantech sector. CCIA was one of the first regional cleantech organizations to
become a chapter of the national Advanced Energy Economy (AEE) system.
Colorado is a world-class hub for energy research and technology innovation. The state’s 30 federal
laboratories—one of the highest per-capita concentrations of federal research facilities in the nation—support
the state’s energy research platform. These laboratories employ over 15,680 direct and indirect workers and
generate over $2.3 billion in annual economic impact to Colorado, contributing significantly to the evolution of
the state’s high-tech industries.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 3
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
The National Renewable Energy Laboratory (NREL), a Golden-based federally funded research laboratory, is
the U.S. Department of Energy’s (DOE) only laboratory committed to the research, development,
commercialization, and deployment of renewable energy and energy efficiency. NREL’s $135 million,
182,000-square-foot Energy Systems Integration Facility (ESIF) was named R&D Magazine’s 2014 “Laboratory
of the Year” as a first-of-its kind facility that merges an ultra-energy efficient workplace, one of the world’s
most energy-efficient, high-performance computing data centers, and sophisticated high-bay laboratory
spaces with outdoor test areas. NREL added 28 new Cooperative Research and Development Agreements
(CRADAs) in fiscal year 2013, totaling 166 active CRADAs, the highest in the DOE system. In fiscal year 2013,
NREL solidified 210 new partnerships including the CRADAs, 20 new license agreements, and more than 60
new patent applications. Since 2002, the 327-acre campus also received more than $3.9 billion in funding and
garnered more than 200 awards and honors for its programs and scientific research.
Cleantech Company Announcements
The nine-county region is a key location for cleantech companies to grow and thrive. Notable company
announcements in 2014 included:
•
•
•
Woodward was named “Deal of the Year” award winner by the Metro Denver Economic Development
Corporation. The company was recognized for its major campus expansion near downtown Fort
Collins, which included a 215,000-square-foot industrial Turbomachinery Systems Building, a new
corporate headquarters, and an engines technology building. Overall, the expansion will bring more
than 900 net, new employees to the redevelopment site.
Future Earth, a 10-year research initiative to address global environmental change solutions and
actions, selected Colorado as the new U.S. headquarters. The center will be managed by the
University of Colorado Boulder (CU-Boulder) and Colorado State University (CSU) and is expected to
mobilize nearly 60,000 scientists and students.
Denver-based RavenBrick LLC added a new $10 million automated manufacturing line to its existing
production line. With this addition, the company will increase production from 2,000 square feet of
windows a month to 500,000 square feet and could increase employment to 160 workers by 2016.
Solar Energy
The nine-county region is a leader in solar energy capacity and development. The region’s abundant sunshine,
specialized manufacturing base, and research institutions give companies a competitive edge. Key solar
energy announcements in 2014 included:
•
•
•
•
•
•
•
Panasonic Enterprise Solutions Co. plans to create a hub for its business solutions operations and
technology center adjacent to Denver International Airport. The new facility will produce large-scale
audio-visual displays and solar panels and could employ up to 400 workers.
IKEA completed its solar-power system expansion, which more than doubled the size of its existing
system at its Centennial store. The store’s solar array is the largest rooftop array in Colorado and the
system’s 4,700 panels could generate 1.7 megawatt-hours of power each year.
Denver-based SunShare contracted with two government agencies—Adams County and the City of
Arvada—to power its buildings with solar energy from Community Solar Gardens. Adams County will
be one of the first counties in the nation to power its buildings with Community Solar energy.
Vikram Solar, an Indian manufacturer of solar PV modules, opened its newest international office in
Boulder. With a strong footprint in Europe, as well as the home market in India, the new office is the
latest in its global expansion.
SunShare LLC signed its largest, single-customer, power-supply contract with Hyland Hills Park and
Recreation District. The 1.4-megawatt-supply deal is also one of the largest contracts for any
community solar developer in the nation and will be completed in early 2015.
Community solar developer Clean Energy Collective (CEC) launched the City and County of Denver’s
newest community solar facilities. Developed on a 5-acre site in northeast Denver, the two 500-kW
solar arrays could produce enough electricity to power 150 homes and reduce CO2 emissions by 54
million pounds.
Tempe, Ariz.-based First Solar Inc. invested in Colorado-based Clean Energy Collective and plans to
develop community solar offerings to residential customers and businesses. The partnership will
explore alternative opportunities to rooftop solar, particularly in areas where customers’ rooftops are
not accessible.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 4
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
Wind Energy
A number of economic and policy factors, including declining wind energy production costs and the short-term
extension of the federal Production Tax Credit in 2013, continued to support the nine-county region’s
wind-energy sector in 2014. Notable wind company announcements in 2014 included:
•
•
Vestas Wind Systems will add 850 temporary workers to its four Colorado factories by the end of 2014
as a result of the company’s increased orders for wind turbines. The company was the world leader in
new wind turbine installations in 2013, capturing 13.2 percent of the world market’s new installations.
Creative Foam Composite Systems relocated its operations from Longmont to an 84,524-square-foot
heavy manufacturing facility in Berthoud and will employ 60 workers with the expansion. The
company manufactures core kits for wind turbines.
Biofuels and Bioenergy
Colorado has a burgeoning biofuels and bioenergy sector with potential for significant growth. The state’s
renewable fuel industry—including conventional and cellulosic ethanol, biodiesel, and advanced biofuels—
contributed $2.7 billion to the state’s economy annually and accounted for nearly 10,620 direct and indirect
jobs totaling $642.2 million in wages, according to Fuels America. The industry also supports $62.3 million in
state tax revenue each year. Notable bioenergy company announcements in 2014 included:
•
•
•
•
Southwest Airlines signed an agreement with Fort Collins-based Red Rock Biofuels LLC to purchase 3
million gallons of low-carbon, renewable jet fuel. The blended product will be used at Southwest’s Bay
Area operations with first delivery expected in 2016.
The U.S. Department of Agriculture (USDA) awarded the Colorado State Forest Service a three-year,
$250,000 grant to develop wood-to-energy projects. The grant will accelerate the development of
wood-energy facilities and technologies across the state to address forest health and wildfire concerns.
The DOE and the USDA awarded associate CSU professor Dr. John McKay a $1.5 million grant to
develop a new biofuel crop. The research will focus on an oilseed feedstock crop that can be grown on
less-than-ideal farmland with relatively low fertilizer inputs and limited irrigation.
Boulder-based Carbon Cycle Energy LLC raised $1.5 million to build facilities for biogas production.
The company built the first facility in 2014, with gas production starting in 2015.
Research and Education Announcements
The nine-county region’s universities and research centers support the state’s thriving energy cluster, conduct
leading-edge energy research, and develop innovative technologies. Key announcements in 2014 included:
•
•
•
•
•
CSU opened the $18.5 million Powerhouse Energy Campus, which includes the existing
35,000-square-foot Engines and Energy Conversion Lab connected to a four-story, 65,000-square-foot
expansion. The Powerhouse also includes office spaces, meeting rooms, research labs, and room for
25 startup companies in an onsite incubator.
CSU partnered with Front Range Community College to build a small-scale, steam-turbine power plant
to train students and conduct energy-related research. The facility will be housed in CSU’s Powerhouse
Energy Campus and will contain a steam boiler, turbine generator, condenser, and system controls
that can generate up to 20 kilowatts (kW) of electricity.
CU-Boulder expanded degree options for working professionals interested in specialized graduate
education focused on energy and water. Beginning in the fall of 2014, students can earn both a Master
of Engineering degree and a Professional Certificate in Renewable and Sustainable Energy or a
Professional Certificate in Water Engineering and Management. Partnering to offer courses for the new
program are CU’s Lockheed Martin Engineering Management Program, Renewable and Sustainable
Energy Institute, and Water Engineering and Management program.
Colorado universities, companies, and nonprofits will receive $14 million in federal funding over five
years to pursue research and use of advanced composite materials. Under the newly announced
Institute for Advanced Composites Manufacturing Innovation, Colorado organizations will use
advanced composite materials to accelerate clean energy technologies and boost the state’s
manufacturing industry.
Colorado School of Mines (CSM) and ConocoPhillips established a center to promote sustainable
energy production and water resources. Areas of focus for the ConocoPhillips Center for a Sustainable
WE2ST (Water-Energy Education, Science and Technology) at CSM include education, water
sustainability challenges, and integrated water resources assessment research, among others.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 5
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
•
•
Denver Public Schools (DPS) received $7 million in federal Youth CareerConnect grant funds and $2.3
million in philanthropic funding to expand access to Science, Technology, Engineering, and
Mathematics (STEM) education programming. The funding will further strengthen the STEM
partnership between DPS and CSM. Over the next two years, DPS will create new STEM programming
at eight high schools that will focus on energy, engineering, health and medicine, digital careers,
finance, information technology, and manufacturing.
The University of Denver broke ground on a new 5-story, 130,000-square-foot STEM building. The $41
million project will include state-of-the-art classrooms, and instructional and research labs. The
building will serve as the home to the new School of Engineering and Computer Science and will
accommodate the increase in enrolling students through expanded research and instruction space,
flexible classrooms, interdisciplinary centers, community areas, and faculty and administration offices.
Green Transportation
Colorado has prioritized the state’s transportation fuels portfolio to promote environmental sustainability and
support low energy costs. Among the state’s alternative transportation fuels, natural gas has been identified
as a viable, low-cost alternative to gasoline and diesel. The state hosts 28 public compressed natural gas
(CNG) fueling stations in 18 cities and several private CNG fueling stations. A number of organizations in the
state have transitioned their entire fleet, or portions thereof, to run on CNG. For example, the City and County
of Denver added 19 CNG garbage and recycling trucks to its fleet in 2014 and opened a new CNG fueling
station dedicated to the city’s trucks near Alameda Ave. and Interstate 25.
•
•
•
•
The DOE awarded NREL and Louisville-based Solid Power LLC a $3.5 million grant to develop a
solid-state, lithium-ion battery for electric vehicles. The battery will require less protective packaging,
which reduces the cost and overall vehicle weight to improve driving range.
CSU was one of 16 universities selected to participate in EcoCAR 3, a national automotive engineering
program sponsored by DOE and General Motors. The four-year competition challenges universities to
redesign a Chevrolet Camaro into a hybrid-electric car that will reduce environmental impact.
CSU was selected as one of four universities nationwide that will receive four all-electric, micro
vehicles for research projects. The University Electric Vehicles (UEVS) are equipped with a tablet-sized
personal computer controlling a variety of electronics and sensors, and can connect to the campus’s
WiFi network to communicate operational data such as position, speed, and battery charge for
projects.
Golden-based eThos Electric Car Share launched its new all-electric car share service in Metro Denver.
The service is one of the first in the nation and the company charges $7 an hour for its available
vehicles, including a Tesla Model S.
Major Cleantech Companies
•
Abengoa Solar
www.abengoasolar.com
•
RavenBrick, LLC
www.ravenbrick.com
•
AECOM
www.aecom-urs.com
•
RES Americas, Inc.
www.res-americas.com
•
ARCADIS
www.arcadis.com
•
Senvion USA Corp.
www.repower.com
•
Ascent Solar Technologies, Inc.
www.ascentsolar.com
•
SMA America, LLC
www.sma-america.com
•
Chicago Bridge & Iron Company
www.cbi.com
•
SolarCity
www.solarcity.com
•
Cool Planet Energy Systems
www.coolplanet.com
•
Sundrop Fuels, Inc.
www.sundropfuels.com
•
GE Energy
www.ge-energy.com
•
Tetra Tech Inc.
www.tetratech.com
•
Gevo Inc.
www.gevo.com
•
UQM Technologies, Inc.
www.uqm.com
•
juwi Wind/Solar
www.juwi.com
•
Vestas
www.vestas.com
Metro Denver Economic Development Corporation | January 29, 2015 | Page 6
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
Major Cleantech Companies Cont’d
•
Lightning Hybrids, Inc.
http://lightninghybrids.com
•
Namasté Solar
www.namastesolar.com
Woodward
www.woodward.com
•
Major Renewable Energy Government and Research Facilities
•
CO Department of Natural Resources
www.dnr.state.co.us
•
National Renewable Energy Laboratory
www.nrel.gov
•
CO Department of Public Health &
Environment
d h t t of Regulatory Agencies
CO Department
www.dora.state.co.us
•
National Institute of Standards &
Technology
i t
U.S. Bureau
of Reclamation
•
Colorado Energy Research Institute
www.ceri-mines.org
•
U.S. Dept. of Energy, Golden Field Office
www.eere.energy.gov/golden
•
Colorado Energy Research Collaboratory
www.coloradocollaboratory.org
•
U.S. Environmental Protection Agency
www.epa.gov
•
Colorado Energy Office
www.colorado.gov/energy
•
U.S. Geological Survey
www.usgs.gov
•
JILA
http://jila.colorado.edu
•
Western Area Power Administration
www.wapa.gov
•
National Center for Atmospheric Research
www.ncar.ucar.edu
•
•
www.usbr.gov
Fossil Fuels Economic Profile
The fossil fuels subcluster includes companies that extract naturally occurring mineral liquids, gases, and
solids used to produce energy. The fossil fuels subcluster also includes mining machinery manufacturers and
companies that provide mining, exploration, and related support services. Companies providing generation,
transmission, and distribution of energy resources are also included. The fossil fuels subcluster consists of 29,
six-digit North American Industry Classification System (NAICS) codes.
The nine‐county region ranked fourth out of the 50 largest metro areas for fossil fuels employment
concentration in 2014. With direct employment in fossil fuels of about 30,340 workers, the region ranked
fourth in absolute employment. As of 2014, 64 percent of Colorado’s fossil fuels employees work in the region.
Fossil Fuels Employment and Company Profile, 2014
Nine-County Region
United States
30,340
1,863,820
Number of direct companies, 2014
1,510
65,500
One-year direct employment growth, 2013-2014
6.5%
2.7%
Five-year direct employment growth, 2009-2014
38.0%
18.0%
Avg. annual direct employment growth, 2009-2014
6.7%
3.4%
Direct employment concentration
1.6%
1.3%
Direct employment, 2014
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014; Development Research Partners.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 7
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
Fossil Fuels Employment
The nine‐county region’s fossil fuels
employment (30,340 workers) rose 6.5
percent in 2014 compared with the
previous year’s level, adding 1,840 new
jobs during the period. National
employment levels also grew over‐the‐
year, rising 2.7 percent and adding
49,630 jobs. About 2 percent of the
nation’s fossil fuels employment is
located in the nine‐county region.
Between 2009 and 2014, the region’s
fossil fuels employment rose 38
percent, compared with an 18 percent
increase nationwide. Fossil fuels
companies employed 1.6 percent of the
state’s total employment base,
compared with a 1.3 percent
employment concentration nationwide.
About 1,510 fossil fuels companies
operated in the nine‐county region in
2014, rising a 4.2 percent increase over
the prior year. Nearly 63 percent of
these companies employed fewer than
10 people, while 1 percent employed
250 or more.
Energy - Fossil Fuels
Number of Employees Growth Rate
15%
10%
5%
0%
-5%
2009
2010
2011
2013
2012
Nine-County Region
2014
United States
Avg Annual
Growth
Source: Dun & Bradstreet, Inc., Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014.
Fossil Fuels Employment by County, 2014
Jefferson
5.0%
Adams
11.2%
Arapahoe Larimer Douglas
2.0%
4.3%
2.5%
Boulder
1.8%
Broomfield
0.1%
Weld
18.4%
Denver
54.6%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Fossil Fuels Employment by Industry Sector, 2014
Power
generation,
transmission, &
distribution
21.1%
Oil & gas
Engineering services,
machinery &
suverying, & mapping Utility system equip. mfg. &
10.1%
wholesale
construction
4.2%
9.8%
Pipeline
transportation
0.7%
Coal & metal ore
mining
0.5%
Fossil fuelsrelated financial
services
0.3%
Oil & gas
extraction
32.1%
Support services
21.1%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 8
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
Fossil Fuels Overview
Colorado offers a rich complement of natural resources, including fossil fuel-rich basins and significant
quantities of coal, crude oil, and natural gas. While many fossil fuel companies conduct business operations
from the Metro Denver region, the majority of the drilling is concentrated along the Western Slope of the
Rocky Mountains and in Weld County. Colorado’s active wells totaled nearly 53,030 as of December 2014, with
42 percent of total active wells located in Weld County.
Colorado’s Niobrara shale formation—located in northeast Colorado’s rich Denver-Julesburg Basin (DJ Basin)
and extending into parts of adjacent Wyoming, Nebraska, and Kansas—attracted significant investment in
2014. Oil and gas companies invested $7 billion in 2014 in the 7,000-foot-deep geographic layer, which could
hold more than 4 billion barrels of recoverable oil reserves. The increasing activity in the Niobrara has led to
substantial economic benefits including job creation, infrastructure development, export possibilities, and
technology development.
It is important to note that global oil prices have dropped over 60 percent since June 2014. This significant
market change will also change oil and gas development strategies over the next year. Nonetheless, company
announcements and new project developments in 2014 included:
•
•
•
•
•
Anadarko Petroleum Corp. plans to drill more than 360 new wells in Weld County. Infrastructure
expansion—including the Lancaster plant expected in 2015—and a concentrated acreage position
prompted significant growth throughout the company’s Colorado operations.
Noble Energy Inc. plans to invest $10 billion in the DJ Basin over the next five years and could
produce 2.9 billion barrels of oil equivalent.
Noble Energy Inc. will add 75,300 square feet to its current Greeley site to support its rapid growth in
the area. The $9.4 million addition will include training and fitness facilities and will have space for 170
employees and 90 pumpers.
Taylor, Mich.-based Atlas Oil Co. opened a crude oil-loading facility in Evans. The facility is located on
the Union Pacific Railroad, which will increase crude hauling operations from Niobrara and expand the
company’s frac-fueling business. The company also opened an office in Evans with 20 employees and
plans to add workers by the end of 2014.
Denver-based ARB Midstream LLC plans to build and operate a $45 million crude oil transloading
terminal in Evans. The Niobrara Connector (NiCon) would provide increased crude-by-rail takeaway
capacity in the DJ Basin and could accommodate multiple grades of crude oil. NiCon will have three
rail loops with the capacity to handle 120 full tank-car unit trains and is slated for completion in early
2015.
Fossil Fuels Company Announcements
The nine-county region’s fossil fuels companies continue to grow and expand. Key company announcements in
2014 included:
•
•
•
•
•
•
FMC Technologies, Inc. broke ground on a new $11.9 million facility in Brighton’s Energy and
Employment Corridor. The company’s 50,000-square-foot facility will support at least 110 employees
over the next five years and will serve as a site for the company’s completion services, fluid control,
and surface-wellhead business units.
Badlands NGL LLC, a California startup, will move its headquarters to Denver. In addition, Badlands
has proposed building a $4 billion polyethylene manufacturing plant in North Dakota. The plant will
help Colorado-based oil and gas companies working in the booming Bakken field deal with excess
natural gas.
WRS Infrastructure & Environment, Inc. opened a new regional office in Denver. The new location will
allow the company to better service the oil and gas, petrochemical, mining, and energy industries in
the western U.S.
Tengasco Inc. relocated its headquarters from Knoxville, Tenn. to Greenwood Village. The oil and gas
company cited the region’s large pool of experienced oil and gas professionals and proximity to
significant oil and gas companies as reasons for its location decision.
Spencer Ogden, an international energy recruitment company, opened a Denver office in October
2014 to capitalize on the region’s oil and gas industry. The company could have up to 15 people in its
Denver office by the end of 2015.
Denver-based Whiting Petroleum Corp. acquired Denver-based Kodiak Oil & Gas in a $6 billion deal.
The merger created the largest crude-oil producer in the Bakken shale of the northern Great Plains.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 9
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
Pipeline Construction
A number of fossil fuels companies announced significant pipeline construction activity in 2014.
•
•
Xcel Energy opened a new $110 million, 34-mile natural gas pipeline from Fort Lupton to the Cherokee
Generating Station in Denver. The pipeline is in response to Colorado’s Clean Air-Clean Jobs Act, which
includes the conversion of the Cherokee power plant from coal to natural gas.
Adams County approved construction of a new crude oil pipeline from Colorado to Oklahoma. The
White Cliffs Twin Pipeline will run parallel to an existing pipeline and could transport 150,000 barrels of
oil each day. The pipeline will pass through 23 miles in the northeast corner of the county.
Product Development and Innovation
Several companies continue to drive new product development and innovation in the nine-county region’s
fossil fuels subcluster.
•
•
Lakewood-based Pioneer Energy designed a new technology to reduce flared natural gas at oil well
sites. The Mobile Alkane Gas Separator (MAGS) converts flare gas into shippable, liquid products and
dry methane that can be used by generators. MAGS will be used in North Dakota and Colorado oil field
operations.
CSU researchers developed a new water quality monitoring tool for oil and gas sites in the DJ Basin.
Colorado Water Watch collects real-time groundwater quality data from oil and natural gas sites and
uploads data every hour to the CSU-operated website.
Major Fossil Fuels Companies
•
Anadarko Petroleum Corporation
www.anadarko.com
•
Kinder Morgan
www.kindermorgan.com
•
Antero Resources
www.anteroresources.com
•
MarkWest Energy Partners, L.P.
www.markwest.com
•
Arch Coal, Inc. (West Elk Mine)
www.archcoal.com
•
Noble Energy, Inc.
www.nobleenergyinc.com
•
BP America
www.bp.com
•
Northern Pipeline Construction
www.gonpl.com
•
Bill Barrett Corp.
www.billbarrettcorp.com
•
Schlumberger Ltd.
www.slb.com
•
Cimarex Energy
www.cimarex.com
•
Shell Exploration and Production
www.shell.com
•
Colorado Springs Utilities
www.csu.org
•
SM Energy Co.
www.sm-energy.com
•
ConocoPhillips Co.
www.conocophillips.com
•
Suncor Energy Inc.
www.suncor.com
•
Crossfire LLC
www.crossfire-llc.com
•
Superior Energy Services Co.
www.superiorenergy.com
•
DCP Midstream
www.dcpmidstream.com
•
TransMontaigne Inc.
www.transmontaigne.com
•
Encana Corporation
www.encana.com
•
Tri-State Generation & Transmission Assoc.
www.tristategt.org
•
Forest Oil
www.forestoil.com
•
TwentyMile Coal Co. (Peabody Energy)
www.peabodyenergy.com
•
Halcón Resources Corp.
www.halconresources.com
•
United Power
www.unitedpower.com
•
Halliburton
www.halliburton.com
•
Westmoreland Coal Company
www.westmoreland.com
•
InfraSource, Inc.
www.infrasourceus.com
•
Whiting Petroleum Corp.
www.whiting.com
Metro Denver Economic Development Corporation | January 29, 2015 | Page 10
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
Major Fossil Fuels Companies Cont’d
•
Intermountain Rural Electric Association
www.intermountain-rea.com
•
•
LINN Energy
www.linnenergy.com
•
Williams
http://co.williams.com
Xcel Energy
www.xcelenergy.com
Energy Workforce Profile
Many companies choose locations because of the available workforce. With nearly half of the nine-county
region’s 3.6 million residents under the age of 35, employers can draw from a large, young, highly educated,
and productive workforce. Of the region’s adult population, 41.2 percent are college graduates and 90.5
percent have graduated from high school. The state has the nation’s second-most highly educated workforce
as measured by the percentage of residents with a bachelor’s degree or higher.
The attractiveness of the region draws new residents through migration. The region’s population is expected
to grow 53.3 percent from 2010 to 2040, driving a 36.3 percent increase in the region’s labor force over the
same period. It is important to note the changing composition of the workforce supply as the baby boomers
begin to retire, which will pose implications for businesses whose employee pool includes significant numbers
of these workers.
Educational Attainment of Metro Denver and Northern
Colorado's Population Age 25 and Older
Less than 9th
Grade
3.9%
Graduate or
Professional
Degree
15.3%
9th to 12th Grade,
No Diploma
5.6%
High School
Graduate
(includes
equivalency)
20.0%
Bachelor’s
Degree
25.9%
Some College,
No Degree
21.7%
Associate Degree
7.7%
Source: U.S. Census Bureau, 2013 American Community Survey.
3,000,000
Metro Denver and Northern Colorado's Labor Force
Projections by Age
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2010
16-24
2020
25-34
35-44
2030
45-54
55-64
2040
65+
Source: Colorado Division of Local Government, State Demography Office.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 11
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
Cleantech Workforce Profile
Age Distribution
The nine‐county region’s cleantech industry
employs 19,920 people and includes a
large pool of talented, well‐educated, and
highly skilled workers. The age distribution
of workers in the cleantech subcluster is
similar to the age distribution across all
industries. However, the cleantech
subcluster has a larger share of employees
that are between the ages of 35 and 54
years old, compared with the age
distribution of all industries across the nine‐
county region.
Metro Denver and Northern Colorado's Distribution of
Employment by Age
30%
25%
20%
15%
10%
5%
The cleantech workforce supply consists of
0%
four main components: those currently
16-24
25-34
35-44
45-54
55-64
65+
working in the industry; those doing a
Cleantech
All Industries
similar type of job in some other industry;
Source: Provided by Arapahoe/Douglas Works! QCEW Employees, Non-QCEW Employees, Self Employed,
Extended Proprietors - EMSI 2014.3 Class of Worker.
the unemployed; and those currently in the
education pipeline. The Metro Denver and
Northern Colorado Cleantech Occupation & Salary Profile below includes the 10 largest cleantech occupations
in the nine-county region. For these 10 largest occupations, the chart details the total number of workers
employed in that occupation across all industries, the number of available applicants that would like to be
working in that occupation, the number of recent graduates that are qualified
for that occupation, and the median and sample percentile annual salaries.
Wages
The 2013 average annual salary for cleantech employees was $78,170 in the nine‐county region, compared
with the national average of $75,500. The nine‐ county region’s cleantech payroll reached nearly $1.5 billion in
2013.
Metro Denver and Northern Colorado Cleantech Occupation & Salary Profile, 2014
10 Largest Cleantech
Occupations
in Metro Denver and Northern
Colorado
1. Electricians
2. Business operations
specialists, all other
3. Engineers
4. Secretaries &
administrative assistants,
except legal, medical, &
executive
5. Plumbers, pipefitters, &
steamfitters
6. Management analysts
7. Physical scientists
8. General & operations
managers
9. Construction laborers
10. Heating, air conditioning,
& refrigeration mechanics
& installers
Total
Working Number of
Across All Available
Industries Applicants
(2014)
(2014)
Number of
Graduates
(2013)
662
Median
Salary
$46,932
10th
Percentile
Salary
25th
Percentile
Salary
75th
90th
Percentile Percentile
Salary
Salary
$88,305 $113,376
$110,261 $134,118
11,002
321
$28,113
$34,595
$57,481
31,368
33,666
795
1,202
77
3,414
$65,708
$88,400
$33,650
$56,451
$46,449
$69,659
49,103
695
71
$35,378
$23,012
$28,553
6,665
19,157
9,758
38
307
337
369
5,637
1,191
$45,071
$66,732
$87,131
$28,630
$42,983
$53,040
$33,806
$54,903
$68,286
$54,235 $63,404
$81,995 $96,249
$111,758 $132,350
33,235
21,174
1,548
1,548
5,881
19
$105,711
$29,455
$54,224
$22,089
$72,467
$26,090
$158,683 $230,626
$33,145 $37,704
3,986
112
245
$42,044
$30,278
$35,485
$43,133
$49,605
$67,408
$50,772
$55,363
Notes: The number of available applicants is a point-in-time measurement of the number of people who have registered in Colorado’s
workforce development system’s statewide database, Connecting Colorado, as being able and available to work in a particular occupation.
Results should be interpreted with caution since registration in Connecting Colorado is self-reported. In addition, the skills rubric may assign
up to four occupation codes for each registrant. Therefore, the number of available applicants could be inflated. Source: Provided by
Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2014.3 Class of Worker.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 12
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
Fossil Fuels Workforce Profile
Age Distribution
The nine‐county region’s fossil fuels industry
employs 30,340 people and includes a large
pool of talented, well‐educated, and highly
skilled workers. Compared with the age
distribution across all industries, the fossil
fuels subcluster has a larger share of
employees that are older than 45 years old
and fewer workers under the age of 24.
Metro Denver and Northern Colorado's Distribution of
Employment by Age
35%
30%
25%
20%
15%
The fossil fuels workforce supply consists of
four main components: those currently
10%
working in the industry; those doing a
5%
similar type of job in some other industry;
the unemployed; and those currently in the
0%
education pipeline. The Metro Denver and
16-24
25-34
35-44
45-54
55-64
65+
Northern Colorado Fossil Fuels Occupation &
Fossil Fuels
All Industries
Salary Profile below includes the 10 largest
Source: Provided by Arapahoe/Douglas Works! QCEW Employees, Non-QCEW Employees, Self Employed, &
Extended Proprietors - EMSI 2014.3 Class of Worker.
fossil fuels occupations in the region. For
these 10 largest occupations, the chart
details the total number of workers employed in that occupation across all industries, the number of available
applicants that would like to be working in that occupation, the number of recent graduates that are qualified
for that occupation, and the median and sample percentile annual salaries.
Wages
Wages in the fossil fuels subcluster are among the highest across all industry clusters. The 2013 average
annual salary for a fossil fuels worker in the nine‐ county region was $109,750, compared with the national
average of $95,420. The nine‐county region’s fossil fuels payroll exceeded $3 billion in 2013.
Metro Denver and Northern Colorado Fossil Fuels Occupation & Salary Profile, 2014
10 Largest Fossil Fuels
Occupations
in Metro Denver and Northern
Colorado
1. Civil engineers
2. First-line supervisors of
construction trades &
extraction workers
3. Property, real estate, &
community association
managers
4. Managers, all other
5. General & operations
managers
6. Accountants & auditors
7. Securities, commodities,
& financial services sales
agents
8. Secretaries &
administrative assistants,
except legal, medical, &
executive
9. Service unit operators,
oil, gas, & mining
10. Wellhead pumpers
Total
Working Number of
Across All Available
Industries Applicants
(2014)
(2014)
Number of
Graduates
(2013)
408
Median
Salary
$78,938
10th
Percentile
Salary
25th
Percentile
Salary
$54,089
$64,170
75th
90th
Percentile Percentile
Salary
Salary
6,586
142
$96,262 $111,278
13,175
342
1,016
$50,063
$34,729
$41,514
$60,059
$71,003
20,880
24,252
273
1,585
40
6,284
$34,311
$50,816
$26,982
$36,778
$31,380
$43,584
$40,110
$59,154
$44,476
$66,824
33,235
33,586
1,548
251
5,881
683
$105,711
$64,761
$54,224
$42,211
$72,467
$51,261
25,652
30
0
$53,415
$37,119
$43,181
$71,148
$93,359
49,103
696
71
$35,378
$23,012
$28,553
$43,133
$50,772
2,270
2,122
22
22
0
0
$39,484
$43,765
$28,676
$31,638
$33,526
$34,617
$48,619
$46,164
$61,267
$48,948
$158,683 $230,626
$83,199 $104,452
Notes: The number of available applicants is a point-in-time measurement of the number of people who have registered in Colorado’s
workforce development system’s statewide database, Connecting Colorado, as being able and available to work in a particular occupation.
Results should be interpreted with caution since registration in Connecting Colorado is self-reported. In addition, the skills rubric may assign
up to four occupation codes for each registrant. Therefore, the number of available applicants could be inflated. Source: Provided by
Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2014.3 Class of Worker.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 13
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
Education & Training
Colorado’s higher education system provides an excellent support system for businesses in the region. There
are 28 public higher education institutions in Colorado, of which seven four‐year and six two‐year public
institutions offering comprehensive curricula are located in the nine‐county region. In addition, there are more
than 100 private and religious accredited institutions and nearly 340 private occupational and technical
schools offering courses in dozens of program areas throughout the state. Although not exhaustive, a list of
the major, accredited educational institutions with the greatest number of graduates for each of the 10 largest
energy occupations in the nine-county region are included below. A directory of all higher education
institutions with corresponding websites may be accessed via http://highered.colorado.gov.
•
Colorado School of Mines
www.mines.edu
•
Emily Griffith Technical College
www.emilygriffith.edu
•
Regis University
www.regis.edu
•
Colorado State University
www.colostate.edu
•
Front Range Community College
www.frontrange.edu
•
University of Colorado
Boulder
www.colorado.edu
•
Colorado State University Global
Campus
www.colostate.edu
•
Jones International University
www.jiu.edu
•
University of Colorado
Denver
www.ucdenver.edu
•
Ecotech Institute
www.ecotechinstitute.com
•
Metropolitan State University of Denver
www.msudenver.edu
•
University of Denver
www.du.edu
Key Reasons for Energy Companies to Locate in the Nine-County
Region
Colorado is a top-10 fossil fuels location offering access to one of the most energy rich regions in
the United States.
•
•
•
•
•
Coal - Colorado produced more than 24 million short tons of coal, or 2.5 percent of the nationwide
supply in 2013. Colorado was the 11th-most productive coal mining state and borders Wyoming, the
nation’s largest producer of coal. (U.S. Department of Energy, Energy Information Administration,
2014)
Natural Gas - Colorado ranked sixth among natural-gas producing states, accounting for 6.6 percent
of U.S. natural gas production. The state also had the nation’s largest reserve of coalbed methane and
accounts for about one-fourth of Colorado’s natural gas production. (U.S. Department of Energy,
Energy Information Administration, 2014)
o The Rockies Express Pipeline (REX) is a 1,679-mile natural gas pipeline system that extends
from the Piceance Basin in Colorado to Clarington, Ohio with a capacity of 1.8 billion cubic feet
per day of natural gas. (U.S. Department of Energy, Energy Information Administration, 2014;
Kinder Morgan, 2014)
Oil - Colorado ranked as the 8th-largest crude oil producer in the nation in 2013, producing a record
64.3 million barrels of crude oil. Colorado ranked sixth in the number of active rotary rigs in 2013 and
Colorado had the seventh-highest proven oil reserves in the nation totaling 1,170 million barrels in
2013. (U.S. Department of Energy, Energy Information Administration, 2014; Baker Hughes, 2014)
Nine of the nation’s 100 largest natural gas fields and two of the 100 largest oil fields are located in
Colorado. (U.S. Department of Energy, Energy Information Administration, 2014)
With the lowest natural gas prices and total energy costs, Colorado was ranked the least
energy-expensive state, with an average monthly energy bill of $301. (WalletHub, 2014)
Colorado is a top-10 cleantech location with newly enacted requirements for renewable energy
generation and access to clean energy resources.
•
•
•
Wind - Colorado ranked 10th in the nation for total installed wind power capacity in 2013 and has the
13th-highest wind resource potential of the states. (American Wind Energy Association, 2013)
Biomass - Colorado has a growing biomass potential with about 5.2 billion kilowatt hours (kWh) of
electricity—enough electricity to power more than 1.4 million homes—that could be generated using
renewable biomass fuels. (U.S. Department of Energy, Energy Information Administration, 2014)
Solar - Colorado ranked seventh in the nation for solar energy capacity installed in the state in 2013.
(Solar Electric Power Association, 2014)
Metro Denver Economic Development Corporation | January 29, 2015 | Page 14
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
Denver ranked 10th among 57 U.S. cities for installed solar photovoltaic (PV) capacity and
ranked 10th for solar PV capacity generated per capita in 2013. (Environment America
Research & Policy Center, 2014)
Water - Colorado has more than 40 potential hydropower sites that could produce more than 737,975
megawatt-hours annually, enough to power 65,000 homes each year. (Colorado Energy Office, 2014)
Metro Denver ranked 10th in clean technology leadership in 2014 and ranked among the top 10 for
green building usage and cleantech investment, innovation, and workforce. (Clean Edge, Inc., 2014)
Denver ranked seventh among the top 10 U.S. cities with the highest percentage of green commercial
space. More than 49 percent of commercial real estate in Denver was certified as green construction.
(CBRE Group, 2014; Maastricht University, 2014)
Metro Denver ranked eighth among the top 25 U.S. cities with the greatest number of energy‐efficient
buildings that earned the 2013 U.S. Environmental Protection Agency’s Energy Star certification. (U.S.
Environmental Protection Agency, 2014)
o
•
•
•
•
Colorado is at the forefront of energy development, with a location that offers:
1. The ability to recruit and retain senior management and scientific talent
•
Of Colorado’s adult population, nearly 38 percent has completed a bachelor’s or higher-level degree,
making Colorado the second-most highly educated state in the nation behind Massachusetts. (U.S.
Census Bureau, 2013 American Community Survey)
•
Colorado ranked seventh in the nation for the number of science and engineering doctorate holders as
a percent of the workforce. (National Science Foundation, 2014)
•
Metro Denver ranked among the top five metro areas with the highest median salary for oil and gas
engineering jobs in 2014, totaling $73,603 after cost of living adjustments. (Payscale.com, 2014)
•
Colorado ranked ninth in the nation for solar-related jobs and ranked seventh for the number of
homes powered by solar in 2013. (The Solar Foundation, 2014)
•
Colorado ranked fifth in the nation for the number of wind-related jobs in 2013. (American Wind
Energy Association, 2014)
•
Colorado ranked fourth for new clean energy and clean transportation jobs during the third quarter of
2014, with more than 1,300 new clean energy jobs announced during the quarter. (Environmental
Entrepreneurs, 2014)
•
Metro Denver ranked as the ninth‐best metro area for science, technology, engineering, and
mathematics (STEM) graduates in 2014. STEM jobs in Metro Denver represented 8.2 percent of all
occupations and the area’s annual mean wage for STEM jobs was $84,380. (NERDWallet, 2014)
2. Proximity to energy-related higher education programs and research centers
•
Colorado ranked ninth in the number of science and engineering graduate students per 1,000
individuals ages 25 to 34 years old in 2011. (National Science Foundation, 2014)
•
Colorado ranked 10th for research and development (R&D) expenditures per capita among academic
institutions in fiscal year 2012. (National Science Foundation, 2014)
•
Colorado School of Mines (CSM) in Golden ranked as the nation’s top engineering school in 2014.
(College Factual, 2014)
•
CSM is one of the few universities in the world to offer programs from baccalaureate through
doctorate levels in all key fields related to energy and is the only institution in the world that offers
doctoral programs in five of the major earth science disciplines. (Colorado School of Mines, 2014)
•
Colorado is home to Education Corporation of America’s Ecotech Institute, the world’s only college
entirely focused on training students for careers in cleantech. (Ecotech Institute, 2014)
•
The Center for Revolutionary Solar Photoconversion (CRSP) was established in 2008 as a joint
research center of the Colorado Energy Research Collaboratory. CRSP conducts basic and applied
research that will result in scientific and technological revolutions in solar energy conversion. (Center
for Revolutionary Solar Photoconversion, 2014)
•
CSU’s Natural Gas Initiative is an interdisciplinary group of scientists across its eight colleges offering
diverse expertise to focus on collaborative solutions for the responsible production of natural gas.
(Colorado State University, 2014)
•
Established in 2013, the CSU Energy Institute serves as the nucleus of CSU’s energy-related research,
education, and outreach. Through its 13 affiliated centers, the Institute aims to increase collaboration
with industry and governmental partners to solve energy problems and create new research and
educational opportunities. (Colorado State University, 2014)
•
The Solar Technology Acceleration Center (SolarTAC) in Aurora is the largest test facility for solar
technologies in the U.S. (The Solar Technology Acceleration Center, 2014)
Metro Denver Economic Development Corporation | January 29, 2015 | Page 15
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
3. Access to the research of a broad collection of federal laboratories and private R&D activities
•
Key federal offices located in the nine-county region include the National Center for Atmospheric
Research; the Office of Surface Mining Reclamation and Enforcement; the U.S. Bureau of Land
Management; the U.S. Bureau of Ocean Energy Management, Regulation and Enforcement; the U.S.
Bureau of Reclamation; the U.S. Forest Service; the U.S. Department of Energy; the U.S.
Environmental Protection Agency; the U.S. Geological Survey; and the Western Area Power
Administration.
•
Firms with fossil fuel energy R&D programs include Anadarko Petroleum, BP America, Encana, Noble
Energy, Shell Exploration & Production, and Suncor Energy.
4. Business organizations and public policy programs designed to encourage industry growth.
•
The Colorado Energy Coalition (CEC) is a consortium of leaders and stakeholders dedicated to
strengthening the business climate in Colorado supporting all sectors of the energy industry. The
CEC’s mission is to brand Colorado as the Balanced Energy Capital of the West. (Metro Denver EDC,
2014)
•
The Colorado Clean Energy Cluster (CCEC) is an economic development organization dedicated to
growing 1,650 clean energy jobs and aims to generate $325 million in economic activity from clean
energy by 2015 in Northern Colorado. CCEC’s initiatives include FortZED, the International Cleantech
Network, C3E, and Net Zero Water. (The Colorado Clean Energy Cluster, 2014)
•
The Advanced Industries (AI) Accelerator Programs were created in 2013 to promote growth and
sustainability in Colorado’s advanced industries including advanced manufacturing, aerospace,
bioscience, electronics, energy and natural resources, infrastructure engineering, and technology and
information. The Colorado Office of Economic Development and International Trade offers Proof of
Concept, Early-Stage Capital & Retention, Infrastructure Funding, and AI Exports grants. Since
inception, the programs have awarded 67 grants totaling $8.2 million to support these critical
industries in their various phases of growth. (The Colorado Office of Economic Development and
International Trade, 2014)
Energy Industry Cluster Definition
NAICS Code*
Fossil Fuels
211111
211112
212111
NAICS Description
SIC Code
SIC Description
Crude petroleum & natural gas extraction
Natural gas liquid extraction
Bituminous coal & lignite surface mining
1311
1321
1221
212112
Bituminous coal underground mining
1222
212291
213111
213112
213112
213113
221111
221111
221111
221112
221112
221112
221113
221113
221113
221121
221121
221121
221122
221122
221122
221210
Uranium-radium-vanadium ore mining
Drilling oil & gas wells
Support activities for oil & gas operations
Support activities for oil & gas operations
Support activities for coal mining
Hydroelectric power generation
Hydroelectric power generation
Hydroelectric power generation
Fossil fuel electric power generation
Fossil fuel electric power generation
Fossil fuel electric power generation
Nuclear electric power generation
Nuclear electric power generation
Nuclear electric power generation
Electric bulk power transmission & control
Electric bulk power transmission & control
Electric bulk power transmission & control
Electric power distribution
Electric power distribution
Electric power distribution
Natural gas distribution
1094
1381
1382
1389
1241
4911
4931
4939
4911
4931
4939
4911
4931
4939
4911
4931
4939
4911
4931
4939
4923
221210
Natural gas distribution
4924
Crude petroleum & natural gas
Natural gas liquids
Bituminous coal & lignite surface
mining
Bituminous coal underground
mining
Uranium-radium-vanadium ores
Drilling oil & gas wells
Oil & gas field exploration services
Oil & gas field services, NEC
Coal mining services
Electric services
Electric & other services combined
Combination utilities, NEC
Electric services
Electric & other services combined
Combination utilities, NEC
Electric services
Electric & other services combined
Combination utilities, NEC
Electric services
Electric & other services combined
Combination utilities, NEC
Electric services
Electric & other services combined
Combination utilities, NEC
Natural gas transmission &
distribution
Natural gas distribution
Metro Denver Economic Development Corporation | January 29, 2015 | Page 16
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
Energy Industry Cluster Definition Cont’d
NAICS Description
SIC Code
Natural gas distribution
4925
NAICS Code*
221210
221210
221210
221210
237120
324110
325110
333131
Natural gas distribution
Natural gas distribution
Natural gas distribution
Oil & gas pipeline & related structures
construction
Oil & gas pipeline & related structures
construction
Oil & gas pipeline & related structures
construction
Oil & gas pipeline & related structures
construction
Oil & gas pipeline & related structures
construction
Power & communication line & related
construction
Power & communication line & related
construction
Power & communication line & related
construction
Power & communication line & related
construction
Petroleum refineries
Petrochemical mfg.
Mining machinery & equipment mfg.
333132
Oil & gas field machinery & equipment mfg.
3533
Coal & other mineral & ore merchant wholesalers
Pipeline transportation of crude oil
Pipeline transportation of natural gas
Pipeline transportation of natural gas
5052
4612
4922
4923
4613
6792
6211-0303
6211-0304
6792
237120
237120
237120
237120
237130
(P)
237130
(P)
237130
(P)
237130
(P)
423520
486110
486210
486210
(P)
4931
4932
4939
1623-00
1623-01
1623-9900
Oil, gas line & compressor station
construction
Water, sewer, & utility lines, NEC
1623-9903
Pipe laying construction
1623-9904
Pipeline construction, nsk
structures
1623-9901
Electric power line construction
structures
1623-9906
Underground utilities contractor
structures
1629-0503
Oil refinery construction
structures
1629-9905
Power plant construction
2911
2869-04
3532
Petroleum refining
Fuels
Mining machin & equip., except oil
& gas field machin & equip.
Oil & gas field machinery &
equipment
Coal & other minerals & ores
Crude petroleum pipelines
Natural gas transmission
Natural gas transmission &
distribution
Refined petroleum pipelines
Oil royalty traders
Oil & gas lease brokers
Oil royalties dealers
Oil royalty traders
486910
523910
523999
523999
533110
(P)
(P)
(P)
(P)
541330
(P)
Pipeline transportation of refined petroleum prod.
Misc. intermediation
Misc. financial investment activities
Misc. financial investment activities
Lessors of nonfinancial intangible assets (except
copyrighted works)
Engineering services
541360
(P)
Geophysical surveying & mapping services
1382
Cleantech
221114**
221115**
221116**
221117**
221118**
221330
(P)
Solar electric power generation
Wind electric power generation
Geothermal electric power generation
Biomass electric power generation
Other electric power generation
Steam & air-conditioning supply
4961-9904
237110
(P)
238210
(P)
238220
238310
314994
(P)
(P)
(P)
325180
325193
333414
(P)
333611
(P)
(P)
SIC Description
Mixed, manufactured, or liquefied
petroleum gas production and/or
distribution
Electric & other services combined
Gas & other services combined
Combination utilities, NEC
Water, sewer, & utility lines
8711-03
Petroleum, mining, & chemical
engineers
Oil & gas field exploration services
Water & sewer line & related structures
construction
Electrical contract. & other wiring install.
contractors
Plumbing, heating & air-conditioning contractors
Drywall & insulation contractors
Rope, cordage, twine, tire cord, & tire fabric mills
1781-9901
Steam supply systems, including
geothermal
Geothermal drilling
1731-0202
Energy management controls
1711-0403
1742-0204
2296-03
Other basic inorganic chemical mfg.
Ethyl alcohol mfg.
Heating equipment (except warm air furnaces)
mfg.
Turbine & turbine generator set units mfg.
2819-06
2869-0104
3433-9904
Solar energy contractor
Solar reflecting insulation film
Cord & fabric for reinforcing fuel
cells
Fuels & radioactive compounds
Ethyl alcohol, ethanol
Solar heaters & collectors
3511
Turbines & turbine generator sets
Metro Denver Economic Development Corporation | January 29, 2015 | Page 17
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
334515
(P)
334515
(P)
334519
335311
(P)
(P)
Energy Industry Cluster Definition Cont’d
NAICS Description
SIC Code
Semiconductor & related device mfg.
3674-0305
Semiconductor & related device mfg.
3674-0306
Semiconductor & related device mfg.
3674-9901
Automatic environmental control mfg. for
3822
residential, commercial, & appliance use
Instrument mfg. for measuring & testing
3825-0305
electricity & electrical signals
Instrument mfg. for measuring & testing
3825-0306
electricity & electrical signals
Other measuring & controlling device mfg.
3829-0218
Power, distribution, & specialty transformer mfg.
3612
335312
(P)
Motor & generator mfg.
3621-03
335312
335911
335999
(P)
3621-9909
3691
3629-0102
336111
336390
423720
(P)
(P)
(P)
482111
541380
541380
541620
541620
541620
541690
541712
(P)
(P)
(P)
(P)
(P)
(P)
(P)
(P)
541712
(P)
924110
(P)
Motor & generator mfg.
Storage battery mfg.
All other misc. electrical equipment & component
mfg.
Automobile mfg.
Other motor vehicle parts mfg.
Plumbing & heating equipment & supplies
(hydronics) merchant wholesalers
Line-haul railroads
Testing laboratories
Testing laboratories
Environmental consulting services
Environmental consulting services
Environmental consulting services
Other scientific & technical consulting services
Research & development in the physical,
engineering, & life sciences (except
biotechnology)
Research & development in the physical,
engineering, & life sciences (except
biotechnology)
Administration of air & water resource & solid
waste management programs
NAICS Code*
334413
(P)
334413
(P)
334413
(P)
334512
(P)
SIC Description
Photovoltaic devices, solid state
Solar cells
Fuel cells, solid state
Environmental controls
3711-0104
3799-0302
5074-0208
Electrical power measuring
equipment
Energy measuring equipment,
electrical
Solarimeters
Power, distribution, & specialty
transformers
Control equipment for electric buses
& locomotives
Windmills, electric generating
Storage batteries
Electrochemical generators (fuel
cells)
Cars, electric, assembly of
Cars, off-highway: electric
Heating equipment & panels, solar
4011-9901
8734-00
8734-9902
8748-9905
8999-07
8999-09
8748-9904
8731-03
Electric railroads
Testing laboratories
Calibration & certification
Environmental consultant
Earth science services
Scientific consulting
Energy conservation consultant
Natural resource research
8733-9902
Research institute
9511-00
Air, water, & solid waste
management
*(P) indicates that only part of the NAICS industry category is represented in the industry cluster definition.
**The NAICS codes are reviewed every five years for potential revisions to reflect new and emerging industries and to allow for industry
changes. In 2012, NAICS code 221119 was reclassified into five new industries to distinguish solar (221114), wind (221115), geothermal
(221116), biomass (221117), and other electric (221118) power generation. As a result, 221119 was removed from fossil fuels and
reclassified into cleantech. Data is limited or not yet available for these five new industries.
Note: NEC indicates “not elsewhere classified.”
Metro Denver Economic Development Corporation | January 29, 2015 | Page 18
ENERGY: Metro Denver and Northern Colorado Industry Cluster Profile
Energy Industry Cluster Relationships
Technologies
Bioconversion
Biofuels
Electric Motors
Ethanol
Fuel Cells
Geographic Information Systems
Nanotechnology
Photonics
Photovoltaics
Client Industries
Support Industries
Agriculture
Beverage Production
Bioscience
Geospatial
Government
Software
Transportation
Energy
Fossil Fuels
Cleantech
Defense/Security
Utilities
Manufacturing
Transportation
Consumers
Businesses
Infrastructure
CO Clean Energy Cluster
CO Cleantech Industry Assoc.
CO Energy Research Institute
CO-LABS
CO Mining Association
CO Renewable Energy Collaboratory
CO School of Mines
CO Petroleum Association
Conservation and Gas Tech. Institute
Federal Laboratories-NIST, NCAR
National Renewable Energy Laboratory
Solar Thermal Alliance of Colorado
For additional information, contact us:
1445 Market Street
Denver, CO 80202-1790
303.620.8092
email: info@metrodenver.org
www.metrodenver.org
1445 Market Street
Denver, CO 80202-1790
303.620.8092
email: info@metrodenver.org
Prepared by Development Research Partners, Inc., www.DevelopmentResearch.net
Metro Denver Economic Development Corporation | January 29, 2015 | Page 19
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Industry Overview
The nine-county Metro Denver and Northern
Colorado region 1 is the major financial center
between Los Angeles and Chicago. Downtown
Denver’s financial district along 17th Street is
known as the “Wall Street of the West.” The
region is one of the few areas outside of the
northeast with a substantial financial services
industry in three subclusters: (1) banking and
finance, (2) investments, and (3) insurance. The
banking and finance subcluster is comprised of
transaction-oriented companies including
commercial banks and credit unions, lenders,
credit agencies, and mortgage bankers. The
investments subcluster includes companies
involved in securities and commodities trade,
real estate investment trusts (REITS), and
portfolio management. The insurance subcluster
consists of insurance carriers and brokerages.
Denver is home to a branch of the Federal Reserve Bank and is the location of one of only six U.S. Mints. The
Denver Mint manufactures all denominations of circulating coins, coin dies, the Denver “D” portion of the
annual uncirculated coin sets, and commemorative coins authorized by the U.S. Congress. The Denver Mint
stores gold and silver bullion and produced nearly 5.8 billion coins in 2013. Circulating coin production at the
Denver Mint reached nearly 6 billion in 2014, a record that has not been reached since the Great Recession.
A variety of trade associations and service firms support the region’s diverse financial services industry base
of nearly 13,400 companies and about 94,800 employees. The Colorado Bankers Association is a key industry
partner (www.coloradobankers.org) representing all Colorado banks and provides government relations,
community relations, educational and training services, and bank insurance. The Colorado Association of
Mortgage Professionals (www.coamp.org) is another nonprofit trade group representing Colorado’s financing
professionals specializing in origination of residential and commercial mortgages and offers professional
development opportunities and member certification support. The Metro Denver Economic Development
Corporation (Metro Denver EDC) formed the Colorado Investment Services Coalition in 2014, which is an
advocacy group for Colorado’s large employers in financial management and advisory services. The Coalition
is working with universities to develop the talent pipeline for the financial services companies expanding in the
region, and will provide a public policy voice on issues of common interest.
Banking and Finance Economic Profile
The banking and finance subcluster consists of 16, six-digit North American Industry Classification System
(NAICS) codes including both depository and non-depository institutions such as commercial banks, credit
card companies, and mortgage brokers.
The nine-county region ranked seventh out of the 50 largest metro areas in banking and finance
employment concentration in 2014. With direct employment in banking and finance of 38,970 workers,
the region ranked 11th in absolute employment. About 77 percent of Colorado’s banking and finance industry
employees work in the region.
1
The nine-county Metro Denver and Northern Colorado region consists of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson,
Larimer, and Weld Counties.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 1
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Banking and Finance Employment and Company Profile, 2014
Nine-County Region
United States
38,970
2,593,770
Number of direct companies, 2014
3,150
218,330
One-year direct employment growth, 2013-2014
-3.1%
-1.7%
Five-year direct employment growth, 2009-2014
-8.0%
-1.1%
Avg. annual direct employment growth, 2009-2014
-1.6%
-0.2%
2.1%
1.8%
Direct employment, 2014
Direct employment concentration
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014; Development Research Partners.
Banking and Finance Employment
The nine-county region’s banking and
finance employment (38,970 workers)
declined 3.1 percent in 2014, compared
with the previous year’s level. Similarly,
national employment levels declined 1.7
percent over-the-year. While the
banking and finance subcluster
rebounded from 2011 through 2013
after four-consecutive years of
employment declines due to the
national finance-related recession,
consolidations in the mortgage industry,
the changing regulatory landscape, and
capital and liquidity management
contributed to employment declines in
2014.
Financial Services-Banking and Finance
Number of Employees Growth Rate
5%
0%
-5%
-10%
2009
2010
2011
2012
2013
2014
Avg Annual
Growth
Nine-County Region
United States
About 3,150 banking and finance
Source: Dun & Bradstreet, Inc., Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014.
companies operated in the nine-county
region in 2014. Approximately 69
percent of the region’s banking and finance companies employed fewer than
10 people, while 0.6 percent employed 250 or more.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 2
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Banking & Finance Employment by County, 2014
Jefferson
12.6%
Boulder
7.9%
Denver
26.3%
Adams
5.6%
Larimer
5.4%
Broomfield
4.4%
Weld
3.2%
Douglas
2.1%
Arapahoe
32.5%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Banking & Finance Employment by Industry Sector, 2014
Federal Reserve
banking
Savings
0.9%
institutions
4.9%
Commercial
banking
38.4%
Credit unions
6.7%
Personal,
business, &
federal credit
institutions
11.2%
Mortgage
banking & loan
brokerage
services
22.5%
Financial transactions
processing &
clearinghouse activities
15.4%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Major Banking and Finance Companies
•
ADS Alliance Data Systems
www.alliancedata.com
•
KeyBank
www.key.com
•
Bank of the West
www.bankofthewest.com
•
Markit On Demand
www.markitondemand.com
•
BBVA Compass Bank
www.bbvacompass.com
•
National Bank Holdings Corp.
www.nationalbankholdings.com
•
Bellco Credit Union
www.bellco.org
•
Nelnet
www.nelnet.com
•
Citywide Banks
www.citywidebanks.com
•
Public Service Credit Union
www.pscu.org
•
CoBank
www.cobank.com
•
Pulte Mortgage
www.pultemortgage.com
•
Colorado Business Bank
www.cobizbank.com
•
Specialized Loan Servicing LLC
www.sls.net
Metro Denver Economic Development Corporation | January 29, 2015 | Page 3
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Major Banking and Finance Companies Cont’d
•
Colorado Housing and Finance Authority
www.chfainfo.com
•
U.S. Bank
www.usbank.com
•
Colorado State Bank and Trust
www.csbt.com
•
Urban Lending Solutions
www.urban-ls.com
•
Elavon
www.elavon.com
•
Vectra Bank Colorado
www.vectrabank.com
•
FirstBank Holding Company
www.efirstbank.com
•
VISA Debit Processing Services
www.visadps.com
•
First Data Corporation
www.firstdata.com
•
Wells Fargo Bank Colorado
www.wellsfargo.com
•
Guaranty Bank and Trust
www.guarantybankco.com
•
Western Union
www.westernunion.com
•
JP Morgan Chase & Co.
www.chase.com
Investments Economic Profile
The investments subcluster consists of 15, six-digit North American Industry Classification System (NAICS)
codes including companies involved in securities, brokerage, real estate investment trusts, and holding
companies.
The nine-county region ranked 12th out of the 50 largest metro areas in investments employment
concentration in 2014. With direct employment of 24,370 investment workers, the region ranked 12th in
absolute employment.
Investments Employment and Company Profile, 2014
Nine-County Region
United States
24,370
1,344,890
Number of direct companies, 2014
6,770
308,880
One-year direct employment growth, 2013-2014
4.2%
1.3%
Five-year direct employment growth, 2009-2014
9.9%
2.9%
Avg. annual direct employment growth, 2009-2014
1.9%
0.6%
Direct employment concentration
1.3%
0.9%
Direct employment, 2014
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014; Development Research Partners.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 4
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Investments Employment
The nine-county region’s investments
employment (24,370 workers) rose 4.2
percent in 2014, compared with the
previous year’s level, adding nearly 980
new jobs over the same period. National
employment levels rose 1.3 percent
between 2013 and 2014. About 1.8
percent of the nation’s investments
employment is located in the region.
Between 2009 and 2014, the region’s
investments employment rose 9.9
percent, compared with 2.9 percent at
the national level. Investment
companies employed 1.3 percent of the
region’s total employment base,
compared with a 0.9 percent national
employment concentration.
About 6,770 investment companies
operated in the nine-county region in
2014. Approximately 94 percent of the
region’s investment companies
employed fewer than 10 people, while
0.1 percent employed 250 or more.
Financial Services-Investments
Number of Employees Growth Rate
5%
0%
-5%
-10%
2009
2010
2011
2012
Nine-County Region
2013
2014
United States
Avg Annual
Growth
Source: Dun & Bradstreet, Inc., Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014.
Investments Employment by County, 2014
Jefferson
9.9%
Douglas
10.7%
Arapahoe
25.3%
Boulder
7.1%
Larimer
4.8%
Adams
3.4%
Weld
3.0%
Broomfield
1.4%
Denver
34.5%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Investments Employment by Industry Sector, 2014
Oil royalty
traders
0.1%
Security &
commodity
services
2.4%
Investors &
investment
advisory services
36.3%
All other trusts
5.1%
Real estate
investment trusts
5.9%
Security brokers
& dealers
34.3%
Holding
companies
15.9%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 5
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Major Investment Companies
•
AIMCO
www.aimco.com
•
Lipper Analytical Services
www.lipperweb.com
•
ALPS
www.alpsinc.com
•
Marsico Capital Management LLC
www.marsicocapital.com
•
Atlantic Trust
www.atlantictrust.com
•
Merrill Lynch
www.ml.com
•
Charles Schwab & Co.
www.schwab.com
•
Morgan Stanley
www.morganstanley.com
•
Curian Capital
www.curian.com
•
Oppenheimer Funds
www.oppenheimerfunds.com
•
Edward Jones
www.edwardjones.com
•
PENSCO Trust Company
www.pensco.com
•
Fidelity Investments
www.fidelity.com
•
RBC Wealth Management
www.rbcwealthmanagement.com
•
Great West Financial Empower
www.empower-retirement.com
•
Scottrade
www.scottrade.com
•
Janus Capital Group
www.janus.com
•
TIAA-CREF
www.tiaa-cref.org
•
Johnson Capital
www.johnsoncapital.com
•
Transamerica Capital
www.transamerica.com
Insurance Economic Profile
The insurance subcluster consists of 13, six-digit North American Industry Classification System (NAICS)
codes including companies involved in all types of insurance ranging from life, accident, health, casualty, title,
and surety insurance to pension, health, and welfare funds businesses.
With direct employment in the insurance subcluster of about 31,480 workers, the nine-county
region ranked 13th in absolute employment out of the 50 largest metro areas in 2014. The region
ranked 18th for insurance employment concentration. About 77 percent of Colorado’s insurance subcluster
employment was located in the region.
Insurance Employment and Company Profile, 2014
Nine-County Region
United States
31,480
2,463,660
Number of direct companies, 2014
3,440
238,160
One-year direct employment growth, 2013-2014
2.8%
1.7%
Five-year direct employment growth, 2009-2014
4.4%
3.1%
Avg. annual direct employment growth, 2009-2014
0.9%
0.6%
Direct employment concentration
1.7%
1.7%
Direct employment, 2014
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014; Development Research Partners.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 6
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Insurance Employment
The nine-county region’s insurance
employment (31,480 workers) rose 2.8
percent in 2014, compared with the
previous year’s level, adding nearly 860
new jobs over the same period. National
employment levels rose 1.7 percent
between 2013 and 2014. About 1.3
percent of the nation’s insurance
employment is located in the region.
Between 2009 and 2014, the region’s
insurance employment rose 4.4 percent,
compared with 3.1 percent at the
national level. Insurance companies
employed 1.7 percent of the region’s
total employment base, compared with
the same employment concentration
nationwide.
About 3,440 insurance companies
operated in the nine-county region in
2014. Approximately 87 percent of the
region’s insurance companies employed
fewer than 10 people, while 0.5 percent
employed 250 or more.
Financial Services-Insurance
Number of Employees Growth Rate
5%
0%
-5%
2009
2010
2011
2012
Nine-County Region
2013
2014
Avg Annual
Growth
United States
Source: Dun & Bradstreet, Inc., Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014.
Insurance Employment by County, 2014
Jefferson
9.3%
Denver
32.8%
Weld
7.4%
Douglas
4.5%
Boulder
3.5%
Larimer
3.4%
Adams
3.2%
Broomfield
0.7%
Arapahoe
35.2%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Insurance Employment by Industry Sector, 2014
Surety insurance Other insurance
carriers
carriers
1.2%
2.3%
Pension, health,
& welfare funds
2.4%
Title insurance
carriers
3.4%
Life insurance
carriers
3.5%
Property & casualty
insurance carriers
6.2%
Insurance
agents, brokers,
& service
64.8%
Health & medical
service carriers
16.2%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 7
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Major Insurance Companies
•
2-10 Home Buyers Warranty Corp.
www.2-10.com
•
Land Title Guarantee Company
www.ltgc.com
•
Allied Insurance
www.alliedinsurance.com
•
Liberty Mutual
www.libertymutual.com
•
Allstate Insurance
www.allstate.com
•
Lockton Companies
www.lockton.com
•
American Family Insurance
www.amfam.com
•
New York Life
www.newyorklife.com
•
Anthem Blue Cross and Blue Shield
www.anthem.com
•
Northwestern Mutual
www.northwesternmutual.com
•
CNA Surety Corp.
www.cnasurety.com
•
Optum (formerly Connextions)
www.optum.com
•
Farmers Insurance
www.farmers.com
•
Pinnacol Assurance
www.pinnacol.com
•
Great-West Financial
www.greatwest.com
•
State Farm Insurance
www.statefarm.com
•
IMA Financial Group
www.imacorp.com
•
United Healthcare
www.uhc.com
•
Jackson National Life Insurance Co.
www.jackson.com
•
USI Colorado, LLC
www.usi.biz
•
Kaiser Permanente
www.kaiserpermanente.org
•
Voya Financial (formerly ING U.S.)
http://voya.com
2014 Industry Highlights
Key Company Announcements
The region is a hotbed of financial services activity with a vibrant workforce, innovative ecosystem, and
exceptional quality of life for companies to grow and expand. Notable company announcements in 2014
included:
•
•
•
•
•
The Metro Denver EDC named Charles Schwab a “Deal of the Year” award winner at its 2014 Annual
Meeting, in recognition of its new $230-million campus in Lone Tree’s RidgeGate development. The
company plans to move a significant number of employees from its San Francisco, Calif.-based
headquarters to Metro Denver over the next 3 to 5 years.
CoBank will relocate its headquarters from Greenwood Village to the Denver Tech Center. The
company will occupy a new 11-story tower that spans 296,000 square feet of office space and ground
floor retail in late 2015.
Lakewood-based FirstBank Holding Company is expanding its corporate headquarters facility, adding
$37 million in new capital investment and more than doubling its existing building. FirstBank also
opened three new branches in downtown Denver and Aurora in 2014.
First Data Corp., a global credit and debit card payments processor, moved from Greenwood Plaza to
the Denver Tech Center. The company leased a 98,000-square-foot space and will invest $8 million in
remodeling the facility.
Liberty National Life Insurance Co. opened a new office in Aurora and announced plans to hire more
than 100 sales agents and managers. The new positions are independently contracted and are
commission-based.
Merger and Acquisition Activity
Financial services companies in the nine-county region announced several mergers and acquisitions in 2014.
•
Denver-based Great-West Financial was created in 2014 through the merger of Winnipeg,
Manitoba-based Great West Lifeco Inc. and Boston-based Putnam Investments. The combined
businesses will have up to $220 billion in assets under administration and more than 5 million
participants. In September, Great-West acquired J.P. Morgan Retirement Plan Services, which added
Metro Denver Economic Development Corporation | January 29, 2015 | Page 8
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
•
•
200 clients, 1.9 million participants, and $167 billion in assets to Great-West. The company also
received 1,000 employees from the acquisition. Great-West rebranded its retirement business,
officially naming it “Empower” following the acquisitions. The deal with J.P. Morgan makes Great-West
the second-largest retirement services provider (by participants) in the United States.
The Boulder Municipal Employees Federal Credit Union and the Community Financial Credit Union
merged. The combined company will hold more than $200 million in total assets and serve over
18,000 members between two full-service branches in Broomfield and Boulder.
IMA Financial Group Inc. merged with Corporate Insurance Group Inc., a privately held insurance
agency that produces, services, and markets commercial property.
Academic and Education Announcements
The region’s K-12 and higher education systems help prepare students in the financial services industry with
expanded academic program offerings.
•
•
The University of Colorado South Denver campus at the Wildlife Experience began offering classes in
fall 2014. The campus offers a general business certificate, an entrepreneurship certificate, and
non-degree programs providing working professionals with accelerated, short courses in project
management, financial modeling, and online marketing.
Denver Public Schools (DPS) received $7 million in federal Youth CareerConnect grant funds and $2.3
million in philanthropic funding to expand access to science, technology, engineering, and math
(STEM) education programs. The funding will further strengthen the K-12 STEM partnership between
DPS and Colorado School of Mines. During the next two years, DPS will create new STEM programs at
eight high schools that will focus on engineering, health and medicine, digital careers, finance,
information technology, energy, and manufacturing.
Venture Capital and Investment Activity
The region’s locational assets and competitive environment attract several nationally recognized companies.
Forbes’ 2014 Global 2000 list included fourteen companies headquartered in the region, the 2014 Fortune 500
list included 9 companies with revenues totaling more than $93.6 billion, and Inc. 500’s fastest-growing
private companies list included 14 local companies.
These growing companies are moving forward with significant venture capital and investment activity.
According to PricewaterhouseCoopers’ MoneyTree Report, Colorado’s financial services companies attracted
eight deals totaling $20.8 million during the past five years. Across all industries, more than 450 Colorado
deals valued at a combined $2.6 billion closed during the same time.
Industry Infrastructure Support
A number of associations and organizations support entrepreneurship and venture-capital financing in
Colorado.
•
•
•
•
The Rocky Mountain Venture Capital Association (www.rockymountainvca.com) represents
entrepreneurs, venture capitalists, and service providers in the Rocky Mountain Region and holds a
bi-annual “Venture Capital in the Rockies” conference to showcase emerging companies and further
venture funding in the region (www.vcintherockies.com). In the past five years, companies in the
region have attracted financing from more than 400 institutional venture firms representing over $4
billion in capital under management.
The Rockies Venture Club (www.rockiesventureclub.org), a nonprofit organization that encourages
entrepreneurship in the region by connecting entrepreneurs, service professionals, investors, and
venture capitalists, offers workshops, training, and capital conferences for its members. The
organization hosts the annual “Angel Capital Summit” that connects investors with entrepreneurial
companies seeking funding and is the oldest, longest-operating angel investing group in the nation.
The Rocky Mountain MicroFinance Institute (RMMFI) is a nonprofit organization serving the needs of
community entrepreneurs to foster growth in Colorado. RMMFI combines affordable and accessible
business development services and flexible microloans to help entrepreneurs create economic
self-sufficiency through business ownership (www.rmmfi.org).
The Denver Office of Economic Development released the second edition of its Denver Capital Matrix,
a resource directory of funding sources for Denver’s small businesses and entrepreneurs. The matrix
identifies approximately 400 funding sources including venture capital firms, angel investors,
traditional bank lenders, and private equity firms (www.denvergov.org).
Metro Denver Economic Development Corporation | January 29, 2015 | Page 9
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Financial Services Workforce Profile
Many companies choose locations because of the available workforce. With nearly half of the nine-county
region’s 3.6 million residents under the age of 35, employers can draw from a large, young, highly educated,
and productive workforce. Of the region’s adult population, 41.2 percent are college graduates and 90.5
percent have graduated from high school. The state has the nation’s second-most highly educated workforce
as measured by the percentage of residents with a bachelor’s degree or higher.
The attractiveness of the region draws new residents through migration. The region’s population is expected
to grow 53.3 percent from 2010 to 2040, driving a 36.3 percent increase in the region’s labor force over the
same period. It is important to note the changing composition of the workforce supply as the baby boomers
begin to retire, which will pose implications for businesses whose employee pool includes significant numbers
of these workers.
Educational Attainment of Metro Denver and Northern
Colorado's Population Age 25 and Older
Less than 9th
Grade
3.9%
Graduate or
Professional
Degree
15.3%
9th to 12th Grade,
No Diploma
5.6%
High School
Graduate
(includes
equivalency)
20.0%
Bachelor’s
Degree
25.9%
Some College,
No Degree
21.7%
Associate Degree
7.7%
Source: U.S. Census Bureau, 2013 American Community Survey.
3,000,000
Metro Denver and Northern Colorado's Labor Force
Projections by Age
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2010
16-24
2020
25-34
35-44
2030
45-54
55-64
2040
65+
Source: Colorado Division of Local Government, State Demography Office.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 10
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Banking and Finance Workforce Profile
Age Distribution
The nine-county region’s banking and
finance subcluster employs 38,970 people
and includes a large pool of talented,
well-educated, and highly skilled workers.
The age distribution of workers in the
banking and finance subcluster is
concentrated in the younger age brackets,
especially the 25-34 age group.
Compared with the age distribution across
all industries, the banking and finance
subcluster has a larger share of
employees that are between the ages of
25 and 44 years old.
Metro Denver and Northern Colorado's Distribution of
Employment by Age
30%
25%
20%
15%
10%
5%
0%
The banking and finance workforce supply
16-24
25-34
35-44
45-54
55-64
65+
consists of four main components: those
Banking & Finance
All Industries
currently working in the industry; those
Source: Provided by Arapahoe/Douglas Works! QCEW Employees, Non-QCEW Employees, Self Employed, &
doing a similar type of job in some other
Extended Proprietors - EMSI 2014.3 Class of Worker.
industry; the unemployed; and those
currently in the education pipeline. The Metro Denver and Northern Colorado Occupation & Salary Profile
below includes the 10 largest banking and finance occupations in the region. For these 10 largest occupations,
the chart details the total number of workers employed in that occupation across all industries, the number of
available applicants that would like to be working in that occupation, the number of recent graduates that are
qualified for that occupation, and the median and sample percentile annual salaries.
Wages
The 2013 average annual salary for a banking and finance worker in the nine-county region was $71,110,
compared with the national average of $70,970. Total payroll for the banking and finance subcluster in the
region reached nearly $2.9 billion in 2013.
Metro Denver and Northern Colorado Banking and Finance Occupation & Salary Profile, 2014
Total
10 Largest Banking and Finance
Working Number of
Occupations
Across All Available
in Metro Denver and Northern
Industries Applicants
Colorado
(2014)
(2014)
1. Tellers
2. Loan officers
3. Securities, commodities,
& financial services sales
agents
4. Customer service
representatives
5. Loan interviewers &
clerks
6. First-line supervisors of
office & administrative
support workers
7. Financial managers
8. Bookkeeping, accounting,
& auditing clerks
9. Bill & account collectors
10. Business operations
specialists, all other
Number of
Graduates
(2013)
2
344
Median
Salary
$27,394
$67,642
10th
Percentile
Salary
25th
Percentile
Salary
$21,445
$35,963
$23,504
$50,835
75th
90th
Percentile Percentile
Salary
Salary
5,110
5,033
399
269
$32,822 $41,288
$92,186 $138,258
22,141
32
0
$46,134
$31,346
$36,920
$66,498
$93,974
36,610
6,537
0
$31,866
$22,194
$26,562
$40,290
$49,754
3,008
123
2
$43,202
$30,243
$36,234
$50,128
$60,299
16,413
9,144
1,110
100
116
385
$54,746
$95,950
$34,320
$63,544
$43,202
$78,437
27,313
4,204
1,208
461
279
2
$36,608
$35,339
$23,878
$26,437
$29,744
$30,389
$44,824
$41,122
32,981
789
77
$69,930
$36,067
$50,024
$92,622 $120,078
$68,848 $84,594
$120,598 $173,742
$53,830
$50,586
Notes: The number of available applicants is a point-in-time measurement of the number of people who have registered in Colorado’s
workforce development system’s statewide database, Connecting Colorado, as being able and available to work in a particular occupation.
Results should be interpreted with caution since registration in Connecting Colorado is self-reported. In addition, the skills rubric may assign
up to four occupation codes for each registrant. Therefore, the number of available applicants could be inflated. Source: Provided by
Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2014.3 Class of Worker.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 11
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Investments Workforce Profile
Age Distribution
The nine-county region’s investments
subcluster employs 24,370 people and
includes a large pool of talented, welleducated, and highly skilled workers.
Compared with the age distribution across
all industries, the investments subcluster
has a larger share of employees between
the ages of 25 and 44 years old.
Metro Denver and Northern Colorado's Distribution of
Employment by Age
35%
30%
25%
20%
15%
The investments workforce supply consists
of four main components: those currently
10%
working in the industry; those doing a
5%
similar type of job in some other industry;
the unemployed; and those currently in the
0%
16-24
25-34
35-44
45-54
55-64
65+
education pipeline. The Metro Denver and
Investments
All
Industries
Northern Colorado Occupation & Salary
Profile below includes the 10 largest
Source: Provided by Arapahoe/Douglas Works! QCEW Employees, Non-QCEW Employees, Self Employed, &
Extended Proprietors - EMSI 2014.3 Class of Worker.
investments occupations in the region. For
these 10 largest occupations, the chart details the total number of workers employed in that occupation across
all industries, the number of available applicants that would like to be working in that occupation, the number
of recent graduates that are qualified for that occupation, and the median and sample percentile annual
salaries.
Wages
Wages in the investments subcluster are among the highest across all industry clusters. The 2013 average
annual salary for an investments worker in the nine-county region was $175,960, compared with the national
average of $192,620. The region’s investment subcluster payroll exceeded $4.1 billion in 2013.
Metro Denver and Northern Colorado Investments Occupation & Salary Profile, 2014
10 Largest Investments
Occupations
in Metro Denver and Northern
Colorado
1. Personal financial
advisors
2. Securities, commodities,
& financial services sales
agents
3. Financial analysts
4. Financial managers
5. First-line supervisors of
non-retail sales workers
6. Accountants & auditors
7. Secretaries &
administrative assistants,
except legal, medical, &
executive
8. Property, real estate, &
community association
managers
9. Executive secretaries &
executive administrative
assistants
10. Bookkeeping, accounting,
& auditing clerks
Total
Working Number of
Across All Available
Industries Applicants
(2014)
(2014)
Number of
Graduates
(2013)
Median
Salary
10th
Percentile
Salary
25th
Percentile
Salary
75th
90th
Percentile Percentile
Salary
Salary
25,741
73
344
$57,782
$43,805
$51,147
$68,370
$77,438
22,141
6,883
9,144
32
299
104
0
365
385
$46,134
$63,690
$95,950
$31,346
$47,258
$63,544
$36,920
$54,288
$78,437
$66,498 $93,974
$80,434 $98,925
$120,598 $173,742
10,337
33,585
217
219
77
683
$43,909
$63,877
$31,554
$41,080
$36,192
$50,294
$55,869 $67,309
$81,973 $102,856
49,635
675
71
$36,026
$23,587
$29,037
$43,992
$51,979
21,224
262
40
$37,731
$29,328
$34,133
$44,762
$51,022
11,858
1,777
144
$50,856
$36,026
$42,266
$59,696
$71,219
27,313
1,187
279
$36,608
$23,878
$29,744
$44,824
$53,830
Notes: The number of available applicants is a point-in-time measurement of the number of people who have registered in Colorado’s
workforce development system’s statewide database, Connecting Colorado, as being able and available to work in a particular occupation.
Results should be interpreted with caution since registration in Connecting Colorado is self-reported. In addition, the skills rubric may assign
up to four occupation codes for each registrant. Therefore, the number of available applicants could be inflated. Source: Provided by
Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2014.3 Class of Worker.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 12
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Insurance Workforce Profile
Age Distribution
The nine-county region’s insurance
subcluster employs 31,480 people and
includes a large pool of talented, welleducated, and highly skilled workers.
Compared with the age distribution across
all industries, the insurance subcluster has
a larger share of employees between the
ages of 25 and 64 years old.
Metro Denver and Northern Colorado's Distribution of
Employment by Age
30%
25%
20%
15%
The insurance workforce supply consists
of four main components: those currently
10%
working in the industry; those doing a
5%
similar type of job in some other industry;
the unemployed; and those currently in
0%
the education pipeline. The Metro Denver
16-24
25-34
35-44
45-54
55-64
65+
and Northern Colorado Occupation &
Insurance
All Industries
Salary Profile below includes the 10
Source: Provided by Arapahoe/Douglas Works! QCEW Employees, Non-QCEW Employees, Self Employed, &
largest insurance occupations in the
Extended Proprietors - EMSI 2014.3 Class of Worker.
region. For these 10 largest occupations,
the chart details the total number of workers employed in that occupation across all industries, the number of
available applicants that would like to be working in that occupation, the number of recent graduates that are
qualified for that occupation, and the median and sample percentile annual salaries.
Wages
Total nine-county payroll in the insurance subcluster reached nearly $2.1 billion in 2013. The 2013 average
annual salary for insurance employees in the region was $68,110, compared with the national average of
$79,700.
Metro Denver and Northern Colorado Insurance Occupation & Salary Profile, 2014
10 Largest Insurance
Occupations
in Metro Denver and Northern
Colorado
1. Insurance sales agents
2. Customer service
representatives
3. Claims adjusters,
examiners, &
investigators
4. Insurance claims & policy
processing clerks
5. Secretaries &
administrative assistants,
except legal, medical, &
executive
6. Business operations
specialists, all other
7. Insurance underwriters
8. Accountants & auditors
9. Managers, all other
10. First-line supervisors of
non-retail sales workers
Total
Working Number of
Across All Available
Industries Applicants
(2014)
(2014)
Number of
Graduates
(2013)
0
Median
Salary
$64,189
10th
Percentile
Salary
25th
Percentile
Salary
15,558
149
$42,141
36,610
6,496
0
$43,638
$33,197
4,012
59
0
$63,877
1,911
52
0
49,635
672
32,981
1,090
33,585
24,187
10,337
$51,688
75th
90th
Percentile Percentile
Salary
Salary
$77,730
$89,794
$37,024
$50,898
$58,136
$41,080
$50,294
$81,973 $102,856
$105,206
$57,928
$74,277
$151,965 $206,627
71
$57,782
$43,805
$51,147
$68,370
$77,438
795
35
231
1,585
77
0
683
6,284
$43,909
$46,342
$49,275
$36,608
$31,554
$27,685
$35,090
$23,878
$36,192
$36,920
$41,891
$29,744
$55,869
$59,530
$57,886
$44,824
$67,309
$85,342
$67,558
$53,830
218
77
$45,802
$34,674
$39,042
$58,157
$68,453
Notes: The number of available applicants is a point-in-time measurement of the number of people who have registered in Colorado’s
workforce development system’s statewide database, Connecting Colorado, as being able and available to work in a particular occupation.
Results should be interpreted with caution since registration in Connecting Colorado is self-reported. In addition, the skills rubric may assign
up to four occupation codes for each registrant. Therefore, the number of available applicants could be inflated. Source: Provided by
Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2014.3 Class of Worker.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 13
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Education & Training
Colorado’s higher education system provides an excellent support system for businesses in the region. There
are 28 public higher education institutions in Colorado, of which seven four‐year and six two‐year public
institutions offering comprehensive curricula are located in the nine‐county region. In addition, there are more
than 100 private and religious accredited institutions and nearly 340 private occupational and technical
schools offering courses in dozens of program areas throughout the state. Although not exhaustive, a list of
the major, accredited educational institutions with the greatest number of graduates for each of the 10 largest
financial services occupations in the nine-county region are included below. A directory of all higher education
institutions with corresponding websites may be accessed via http://highered.colorado.gov.
•
Colorado State University
www.colostate.edu
•
Jones International University
www.jiu.edu
•
University of Colorado Boulder
www.colorado.edu
•
Colorado State University Global
Campus
www.colostate.edu
•
Metropolitan State University of
Denver
www.msudenver.edu
•
University of Colorado Denver
www.ucdenver.edu
•
DeVry University – Colorado
www.devry.edu
•
Red Rocks Community College
www.rrcc.edu
•
University of Denver
www.du.edu
•
Front Range Community College
www.frontrange.edu
•
Regis University
www.regis.edu
•
University of Northern Colorado
www.unco.edu
Key Reasons for Financial Services Companies to Locate in the
Nine-County Region
The region is a top location for financial services companies offering:
1. Access to a large, highly qualified and entrepreneurial workforce
•
Metro Denver has a higher-than-average concentration of employment in business and financial
operations occupations. About 6.3 percent of Metro Denver’s labor force is employed in business and
financial operations occupations, compared with the U.S. average of 4.7 percent. (U.S. Census
Bureau, 2012 American Community Survey 1-Year Estimate)
•
About 2.6 percent of the 71,300 certified financial planner certificates in the United States are held in
Colorado even though Colorado’s population represents just 1.7 percent of the national population
total. (Certified Financial Planner Board of Standards, Inc., 2014; U.S. Census Bureau, 2014)
•
Three Metro Denver universities ranked among the nation’s “Best Undergraduate Business Schools” in
2014. The Daniels College of Business at the University of Denver (DU) ranked 67th, the College of
Business at Colorado State University (CSU) ranked 73rd, and the Leeds School of Business at the
University of Colorado Boulder (CU-Boulder) ranked 97th. (Bloomberg Businessweek, 2014)
•
The Princeton Review named the Daniels College of Business at DU and the College of Business at CSU
to the list of the “Best 295 Business Schools” in 2014. DU was listed as having the fourth-best green
MBA program, while CSU ranked among the top 10 best-administered programs. (The Princeton
Review, 2014)
•
The Business School at the University of Colorado Denver is the largest accredited graduate school of
business in the Rocky Mountain West. The school’s Association to Advance Collegiate Schools of
Business accreditation places the Business School in the top 5 percent of business programs
worldwide. (The University of Colorado Denver, 2014)
•
The Leeds School of Business at CU-Boulder ranked among the nation’s top 100 full-time MBA
programs in 2014. Three Metro Denver part-time MBA programs at CSU, CU-Boulder, and DU ranked
among the nation’s top 100. (U.S. News & World Report, 2014)
•
Two Metro Denver universities ranked among the top 100 “Best Online MBA Programs” in 2014. The
Daniels College of Business at DU ranked 36th and CSU’s Global Campus ranked 82nd. (U.S. News &
World Report, 2014)
•
Denver ranked among the top five “Best Cities for New Grads” and received particular accolades for its
expanding job market for new graduates, higher median salaries for recent graduates, and
invigorating outdoor culture. (Kiplinger’s Personal Finance, 2014)
Metro Denver Economic Development Corporation | January 29, 2015 | Page 14
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
2. An overall better quality of life
•
Castle Rock ranked fourth in MONEY Magazine’s 2014 list of the “Best Places to Live.” Centennial
(13th) and Boulder (23rd) were also named to the list’s top 50. (MONEY Magazine, 2014)
•
Metro Denver ranked as the fourth-fittest metro area in the nation in 2014. Denver’s high percentage
of residents participating in physical activity, and low obesity and cardiovascular disease rates
contributed to its high rank. (American College of Sports Medicine, 2014)
•
Colorado has the fourth-highest percentage of state land area devoted to the National Forest System.
The state offers access to more than 50 national parks and wilderness areas, 42 state parks, and the
greatest number of 14,000-foot peaks in the nation that support a healthy, active lifestyle. (U.S.
Forest Service, 2014; Colorado State Parks, 2014)
•
Boulder ranked second on the 2014 list of the “Top 100 Best Places to Live.” Aurora (50th) and
Lakewood (88th) were also named to the list. (Livability.com, 2014)
•
FasTracks, a comprehensive project to build out Metro Denver’s entire mass transit system by 2019, is
the largest simultaneous transit buildout in U.S. history. The expansion will make Metro Denver one of
the top five regions in the country in terms of miles of fixed rail.
3. Low to moderate costs of doing business
•
Metro Denver office rental rates averaged $28.83 per square foot in the fourth quarter of 2014,
making the region’s office market highly competitive with other major markets in the U.S. (CoStar
Realty Information, The CoStar Office Report, Q4 2014)
•
Colorado’s $16 registration fee for brokers and dealer representatives is one of the lowest in the
nation. (State of Colorado, Division of Securities)
4. A pro-business environment and competitive tax structure
•
Colorado's simplified corporate income tax structure based on single-factor apportionment allows
companies to pay taxes based solely on their sales in the state. Along with few regulatory burdens,
Colorado's corporate income tax rate of 4.63 percent is one of the lowest and most competitive tax
structures in the nation. (State of Colorado; The Tax Foundation)
•
Colorado's general Insurance Premium Tax is lower than taxes in 16 other states. The state's
Insurance Premium Tax is generally 2 percent, but businesses with a home or regional office in
Colorado are only taxed 1 percent. (National Association of Insurance Commissioners, 2009)
•
Colorado has the nation’s ninth-best tax climate for entrepreneurship and small business. (Small
Business & Entrepreneurship Council, 2014)
•
Metro Denver ranked fourth among Forbes 2014 “Best Places for Business and Careers” list. Four
other Colorado metropolitan areas were included on the list. The Fort Collins metro area ranked fifth
overall, Greeley ranked 20th, Boulder ranked 23rd, and Colorado Springs ranked 29th. (Forbes, 2014)
•
Colorado ranked as the No. 8 small-business-friendly state in the nation. Fort Collins (24th) and
Denver (28th) ranked among 84 cities in the country. (Thumbtack.com, 2014; Ewing Marion Kauffman
Foundation, 2014)
5. A central location and easy global access
•
Denver International Airport was the fifth-busiest airport in the nation and 15th-busiest worldwide in
terms of passenger traffic in 2013. (U.S. Bureau of Transportation Statistics, 2014; Airports Council
International 2014; and Denver International Airport, 2014)
•
Metro Denver's unique geographic location in the Mountain time zone makes it the largest region in
the U.S. to offer one-bounce satellite uplinks. This capability provides companies with real-time
connections to six of seven continents in one business day. (Metro Denver Economic Development
Corporation)
•
Located on the 105th meridian, the nine-county region’s central location at the exact midpoint
between Tokyo and Frankfurt positions the region favorably to serve growing world markets. The
region is an excellent location for doing business with the entire nation and is within four hours flying
time of every North American city with a population of 1 million or more. (Metro Denver Economic
Development Corporation)
•
Denver ranked among the top-five safest cities for natural disasters in 2014.
(HomeownersInsurance.com, 2014)
Metro Denver Economic Development Corporation | January 29, 2015 | Page 15
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Financial Services Industry Cluster Definition
NAICS Code
NAICS Description
Banking and Finance
521110
Monetary authorities
522110
Commercial banking
522110
Commercial banking
522110
Commercial banking
522110
Commercial banking
522120
Savings institutions
522120
Savings institutions
522130
Credit unions
522130
Credit unions
522190
Other depository credit intermediation
522210
Credit card issuing
522210
Credit card issuing
522210
Credit card issuing
522210
Credit card issuing
SIC Code
SIC Description
6011
6021
6022
6029
6081
6035
6036
6061
6062
6022
6021
6022
6141
6153
522220
522220
Sales financing
Sales financing
6141
6153
522220
522291
522292
Sales financing
Consumer lending
Real estate credit
6159
6141
6111
522292
522292
Real estate credit
Real estate credit
6159
6162
522293
522293
522293
International trade financing
International trade financing
International trade financing
6081
6082
6111
522293
522294
International trade financing
Secondary market financing
6159
6111
522294
522298
522298
522298
522298
Secondary market financing
All other nondepository credit
All other nondepository credit
All other nondepository credit
All other nondepository credit
522298
522298
522310
522320
6141
6159
6163
6099
522390
522390
All other nondepository credit intermediation
All other nondepository credit intermediation
Mortgage & nonmortgage loan brokers
Financial transactions processing, reserve, &
clearinghouse activities
Financial transactions processing, reserve, &
clearinghouse activities
Financial transactions processing, reserve, &
clearinghouse activities
Other activities related to credit intermediation
Other activities related to credit intermediation
Federal reserve banks
National commercial banks
State commercial banks
Commercial banks, NEC
Foreign bank & branches & agencies
Federal savings institutions
Savings institutions, except federal
Federal credit unions
State credit unions
State commercial banks
National commercial banks
State commercial banks
Personal credit institutions
Short-term business credit institutions,
except agricultural
Personal credit institutions
Short-term business credit institutions,
except agricultural
Misc. business credit institutions
Personal credit institutions
Federal & federally sponsored credit
agencies
Misc. business credit institutions
Mortgage bankers & loan
correspondents
Foreign bank & branches & agencies
Foreign trade & international banks
Federal & federally sponsored credit
agencies
Misc. business credit institutions
Federal & federally sponsored credit
agencies
Misc. business credit institutions
Central reserve depository, NEC
Foreign bank & branches & agencies
Foreign trade & international banks
Federal & federally sponsored credit
agencies
Personal credit institutions
Misc. business credit institutions
Loan brokers
Functions related to deposit banking
561450
Credit bureaus
7323
Functions related to deposit banking
Mortgage bankers & loan
correspondents
Credit reporting services
Insurance
524113
524113
524114
524114
524126
524126
524127
524128
524128
524130
Direct life insurance carriers
Direct life insurance carriers
Direct health & medical insurance carriers
Direct health & medical insurance carriers
Direct property & casualty insurance carriers
Direct property & casualty insurance carriers
Direct title insurance carriers
Other direct insurance carriers
Other direct insurance carriers
Reinsurance carriers
6311
6321
6321
6324
6331
6351
6361
6331
6399
6311
Life insurance
Accident & health insurance
Accident & health insurance
Hospital & medical service plans
Fire, marine, & casualty insurance
Surety insurance
Title insurance
Fire, marine, & casualty insurance
Insurance carriers, NEC
Life insurance
522320
522320
intermediation
intermediation
intermediation
intermediation
6159
6019
6081
6082
6111
6153
7389-09
6099
6162
Short-term business credit institutions,
except agricultural
Financial services
Metro Denver Economic Development Corporation | January 29, 2015 | Page 16
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Cont’d
SIC Description
Accident & health insurance
Hospital & medical service plans
Fire, marine, & casualty insurance
Surety insurance
Title insurance
Insurance agents, brokers, & service
Insurance agents, brokers, & service
Pension, health, & welfare funds
524298
525110
525120
525190
525190
525190
Financial Services Industry Cluster Definition
NAICS Description
SIC Code
Reinsurance carriers
6321
Reinsurance carriers
6324
Reinsurance carriers
6331
Reinsurance carriers
6351
Reinsurance carriers
6361
Insurance agencies & brokerages
6411
Claims adjusting
6411
Third party administration of insurance &
6371
pension funds
Third party administration of insurance &
6411
pension funds
All other insurance related activities
6411
Pension funds
6371
Health & welfare funds
6371
Other insurance funds
6321
Other insurance funds
6324
Other insurance funds
6331
Investments
523110
523120
523130
523130
523130
523140
523210
523910
523910
523910
523920
523920
523920
523930
523991
523991
523991
523999
523999
525910
525920
525990
525990
551111
551112
Investment banking & securities dealing
Securities brokerage
Commodity contracts dealing
Commodity contracts dealing
Commodity contracts dealing
Commodity contracts brokerage
Securities & commodity exchanges
Misc. intermediation
Misc. intermediation
Misc. intermediation
Portfolio management
Portfolio management
Portfolio management
Investment advice
Trust, fiduciary & custody activities
Trust, fiduciary & custody activities
Trust, fiduciary & custody activities
Misc. financial investment activities
Misc. financial investment activities
Open-end investment funds
Trusts, estates & agency accounts
Other financial vehicles
Other financial vehicles
Offices of bank holding companies
Offices of other holding companies
Security brokers & dealers
Security brokers & dealers
Commodity contracts brokers, dealers
Security & commodity exchanges
Investors, NEC
Commodity contracts brokers, dealers
Security & commodity exchanges
Security brokers & dealers
Oil royalty traders
Investors, NEC
Investment advice
Trusts, NEC
Investors, NEC
Investment advice
Nondeposit trust facilities
Security & commodity service
Trusts, NEC
Security brokers & dealers
Security & commodity service
Management investment, open-end
Trusts, NEC
Investment offices, NEC
Real estate investment trusts
Bank holding companies
Holding companies, NEC
NAICS Code
524130
524130
524130
524130
524130
524210
524291
524292
524292
6211
6211
6221
6231
6799
6221
6231
6211
6792
6799
6282
6733
6799
6282
6091
6289
6733
6211
6289
6722
6733
6726
6798
6712
6719
Insurance agents, brokers, & service
Insurance agents, brokers, & service
Pension, health, & welfare funds
Pension, health, & welfare funds
Accident & health insurance
Hospital & medical service plans
Fire, marine, & casualty insurance
Note: NEC indicates “not elsewhere classified.”
Metro Denver Economic Development Corporation | January 29, 2015 | Page 17
FINANCIAL SERVICES: Metro Denver and Northern Colorado Industry Cluster Profile
Financial Services Industry Cluster Relationships
Technologies
Internet
High-Speed
Infrastructure
Support Industries
Financial Services
Client Industries
Software
Telecommunications
Healthcare
Call Centers
Professional Services
Banking and Finance
Insurance
Investments
Consumers
Businesses
Government
Infrastructure
Angel Networks
CO Assoc. of Mortgage
Professionals
CO Bankers Assoc.
CO Venture Capital Assoc.
Rocky Mtn. Venture Capital Assoc.
RMMI
For additional information, contact us:
1445 Market Street
Denver, CO 80202-1790
303.620.8092
email: info@metrodenver.org
www.metrodenver.org
Prepared by Development Research Partners, Inc., www.DevelopmentResearch.net
Metro Denver Economic Development Corporation | January 29, 2015 | Page 18
HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
Industry Overview
The healthcare and wellness cluster includes a
dynamic and growing group of companies that
provide preventive, curative, and rehabilitative
services offered by healthcare providers,
medical and specialty hospitals, kidney dialysis
centers, nutrition and weight loss facilities,
fitness centers, medical spas and massage
facilities, public health and education, and
other healthcare and wellness organizations.
Extending beyond healthcare delivery, the
cluster represents a continuum of businesses
ranging from treating disease to a
multidimensional and holistic approach that
focuses on complete physical and mental
health, social well-being, and disease
prevention.
The nine-county Metro Denver and Northern Colorado 1 region is a leading healthcare and wellness hub. The
region’s health services industries are truly regional, serving not only surrounding areas of Colorado but
several western states ranging from Montana to New Mexico. The region has a large concentration of
healthcare and wellness facilities with more than 192,290 healthcare and wellness workers in nearly 18,160
companies across the region. The healthcare and wellness cluster propels the region’s economy forward by
attracting substantial resources and promoting company expansions from which patients, educational and
research institutions, companies, research and development, and the community all derive significant
benefits.
One of the key characteristics of the healthcare and wellness industry is its resiliency to economic cycles,
which continues to drive job growth as a result of several key trends. Colorado’s health insurance landscape is
undergoing rapid change, and the pace accelerated in 2014. An estimated 500,000 Coloradans are expected
to gain insurance through the Affordable Care Act, driven by private insurance enrollment through Connect for
Health Colorado, public insurance enrollment in Medicaid, and the expanding health benefits in both. This will
also drive further collaboration and cooperation among various healthcare and wellness facilities across the
region for specialized services, research, workforce, and facilities.
Another contributing factor is increasing demand for healthcare services, largely due to an aging and growing
population. By 2040, Colorado’s population ages 65 and older is projected to double to 1.5 million. This
demographic shift toward an older population with the aging of the baby boomer generation will generate
economic activity based on increased demand for hospital and nursing care, medical services, and long-term
and at-home services.
In addition, the digital healthcare infrastructure, created by electronic health records and software solutions,
has greatly improved the way patient care is delivered and compensated. Improvements in the digital
healthcare infrastructure have also provided the ability to share patient records with other providers. Lastly,
providers are moving toward integrated healthcare to increase efficiencies and mitigate risks by establishing
continuity of care. The integrated healthcare approach is changing the way individuals prevent illness and
treat diseases. Improved medical practices, holistic approaches, and new intellectual and spiritual philosophies
have fostered the movement toward an integrated approach to healthcare.
Healthcare and Wellness Economic Profile
The healthcare and wellness cluster includes the offices of physicians, dentists, chiropractors, optometrists,
mental health practitioners, physical and speech therapists, podiatrists, and other health practitioners. The
cluster includes hospitals ranging from general medical, surgical, and psychiatric to substance abuse and
specialty care, and includes centers focused on family planning, outpatient mental health and substance
abuse, kidney dialysis, diagnostic imaging, and emergency care. Companies focused on nursing care, assisted
1
The nine-county Metro Denver and Northern Colorado region consists of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson,
Larimer, and Weld Counties.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 1
HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
living, and long-term care and businesses that provide services for individuals, families, and the elderly are
also included. The cluster includes home health and recreation equipment rental, fitness and recreation
facilities, diet and weight reducing services, and massage and yoga services. Companies that manufacture
ophthalmic goods, sports and athletic equipment, and outerwear and retailers engaged in vitamins and
nutrition supplements are also included. The cluster includes government agencies engaged in the planning,
administration, and coordination of public health programs and services. The healthcare and wellness cluster
consists of 53, six-digit North American Industry Classification System (NAICS) codes.
With direct employment of 192,290 healthcare and wellness workers, the nine-county region
ranked 13th in absolute employment out of the 50 largest metro areas in 2014. The region ranked
30th for healthcare and wellness employment concentration. About 72 percent of Colorado’s healthcare and
wellness cluster employees worked in the region.
Healthcare and Wellness Employment and Company Profile, 2014
Nine-County Region
United States
192,290
16,877,720
18,160
1,348,870
One-year direct employment growth, 2013-2014
4.9%
1.6%
Five-year direct employment growth, 2009-2014
21.2%
8.3%
3.9%
1.6%
10.4%
11.6%
Direct employment, 2014
Number of direct companies, 2014
Avg. annual direct employment growth, 2009-2014
Direct employment concentration
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014; Development Research Partners.
Healthcare and Wellness Employment
The nine-county region’s healthcare and
wellness employment (192,290
workers) rose 4.9 percent in 2014,
compared with the previous year’s level,
adding nearly 8,980 new jobs over the
same period.
About 18,160 healthcare and wellness
companies operated in the nine-county
region in 2014. Approximately 82
percent of the region’s healthcare and
wellness companies employed fewer
than 10 people, while 0.4 percent
employed 250 or more.
Healthcare & Wellness
Number of Employees Growth Rate
10%
5%
0%
2009
2010
2011
2012
Nine-County Region
2013
United States
2014
Avg Annual
Growth
Source: Dun & Bradstreet, Inc., Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 2
HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
Healthcare & Wellness Employment by County, 2014
Larimer
8.8%
Douglas Weld
5.3% 4.0% Broomfield
1.3%
Boulder
11.3%
Denver
26.4%
Jefferson
12.4%
Arapahoe
16.3%
Adams
14.1%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Healthcare & Wellness Employment by Industry Sector,
2014
Medical & dental
Public health
laboratories
programs & other
1.1%
health agencies
1.6%
Organic & health
food stores
1.8%
All other health
services
4.0%
Nursing care
facilities
6.8%
General & medical,
surgical, & psychiatric
hospitals
36.9%
Fitness &
recreational
services
8.0%
Kidney dialysis &
home health care
services
11.0%
Physician offices
& clinics
28.7%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Major Healthcare and Wellness Companies
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24 Hour Fitness
www.24hourfitness.com
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HSS Inc.
http://hss-us.com
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American Medical Response
www.amr.net
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Kaiser Permanente Colorado
www.kaiserpermanente.org
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Banner Health
www.bannerhealth.com
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Kindred Healthcare, Inc.
www.kindredhealthcare.com
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Better Bodies Fitness Centers
www.betterbodiescolorado.com
•
InnovAge
www.myinnovage.org
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Boulder Community Health
www.bch.org
•
Life Care Centers of America
www.lcca.com
•
Boulder Center for Sports Medicine
www.bouldersportsmedicine.org
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Longmont United Hospital
www.luhcares.org
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Centura Health
www.centura.org
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Massage Envy
www.massageenvy.com
Metro Denver Economic Development Corporation | January 29, 2015 | Page 3
HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
Major Healthcare and Wellness Companies Cont’d
•
Children’s Hospital Colorado
www.childrenscolorado.org
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National Jewish Health
www.nationaljewish.org
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Comfort Dental
www.comfortdental.com
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Natural Grocers by Vitamin Cottage
www.naturalgrocers.com
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CorePower Yoga
www.corepoweryoga.com
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Platte Valley Medical Center
www.pvmc.org
•
Craig Hospital
www.craighospital.org
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Quest Diagnostics
www.questdiagnostics.com
•
DaVita Inc.
www.davita.com
•
Rocky Mountain Poison & Drug Center
www.rmpdc.org
•
Denver Health and Hospital Authority
http://denverhealth.org
•
Rudi’s Organic Bakery
www.rudisbakery.com
•
Gaiam, Inc.
www.gaiam.com
•
SCL Health System (formerly Exempla Healthcare)
www.sclhealthsystem.org
•
HCA-HealthONE LLC
www.healthonecares.com
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SlimGenics, LLC
www.slimgenics.com
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HealthGrades, Inc.
www.healthgrades.com
•
University of Colorado Health
www.uchealth.org
Major Healthcare and Wellness Foundations and Community-Based Organizations
•
A.V. Hunter Trust Inc.
http://avhuntertrust.org
•
The Denver Health Foundation
www.denverhealthfoundation.org
•
Anschutz Family Foundation
www.anschutzfamilyfoundation.org
•
The Denver Hospice
www.thedenverhospice.org
•
Arapahoe House
www.arapahoehouse.org
•
El Pomar Foundation
www.elpomar.org
•
Aurora Mental Health Center
www.aumhc.org
•
Helen K. & Arthur E. Johnson Foundation
www.johnsonfoundation.org
•
Belle Bonfils Memorial Blood Center
www.bonfils.org
•
Kenneth King Foundation
www.kennethkingfoundation.org
•
Caring for Colorado Foundation
www.caringforcolorado.org
•
Jefferson Center for Mental Health
www.jeffersonmentalhealth.org
•
Catholic Health Initiatives
www.catholichealthinit.org
•
Jewish Family Service of Colorado
http://jewishfamilyservice.org
•
Children’s Hospital Colorado Foundation
www.childrenscoloradofoundation.org
•
LiveWell Colorado
http://livewellcolorado.org
•
Clinica Family Health Services
www.clinica.org
•
Mental Health Center of Denver
www.mhcd.org
•
Colorado Behavioral Health Council
www.cbhc.org
•
Mental Health Partners
www.mhpcolorado.org
•
Colorado Community Health Network
www.cchn.org
•
North Colorado Health Alliance
www.northcoloradohealthalliance.org
•
The Colorado Health Foundation
www.coloradohealth.org
•
Rose Community Foundation
www.rcfdenver.org
•
The Colorado Trust
www.coloradotrust.org
•
Visiting Nurse Association of Colorado
www.vnacolorado.org
•
Community First Foundation
www.communityfirstfoundation.org
•
Western Dairy Association
www.westerndairyassociation.org
Metro Denver Economic Development Corporation | January 29, 2015 | Page 4
HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
Major Healthcare and Wellness Government and Research Facilities
•
CO Department of Agriculture
www.colorado.gov/ag
•
University of CO Anschutz Medical Campus
www.ucdenver.edu
•
CO Department of Human Services
www.colorado.gov/CDHS
•
U.S. Dept. of Agriculture
www.usda.gov
•
CO Department of Public Health &
Environment
www.cdphe.state.co.us
•
U.S. Dept. of Health & Human Services Health
Resources & Services Admin.
www.hrsa.gov
•
Tri-County Health Department
www.tchd.org
•
U.S. Dept. of Veterans Affairs
www.va.gov
2014 Industry Highlights
Anschutz Medical Campus and Fitzsimons Life Science District
The nine-county region is a healthcare and wellness powerhouse with cutting-edge research and development
facilities, unmatched talent, and state-of-the-art amenities. The region is home to internationally renowned
clinical systems, institutions, and organizations including the Fitzsimons Life Science District and the adjacent
Anschutz Medical Campus in Aurora. When complete, the $5.2 billion project encompassing 578 total acres
and more than six million square feet of new real estate will be the largest medical-related redevelopment in
the nation and the world’s only completely new research, education, and patient care complex. The campus is
home to the schools and colleges of Medicine, Nursing, Dental Medicine, Pharmacy, and Public Health.
According to the University of Colorado Denver, CU Anschutz contributed more than $2.6 billion to Colorado’s
economy between 2012 and 2013 and employment increased by 4,200 jobs over this period of time. With two
world-class research hospitals—the University of Colorado Hospital (UCH) and Children’s Hospital Colorado—
the campus will total 18 million square feet and employ more than 44,000 people at full buildout. A number of
facilities expanded in 2014:
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•
•
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•
Located adjacent to the Anschutz Medical Campus is the U.S. Department of Veterans Affairs (VA)
Eastern Colorado Healthcare System hospital and facilities. The VA’s hospital and facilities in Aurora
house the VA Schizophrenia Research Center—one of three in the VA system nationwide—the Mental
Illness Research, Education, and Clinical Centers, and conduct research on best practices and care
coordination for veterans. Construction began in 2011 on a new VA Hospital that will replace the
existing facility in Denver and will be completed in 2016. The new 1.2 million-square-foot VA Hospital
will include a spinal-cord injury center and community living center. At buildout, the VA Hospital is
expected to employ about 2,000 people and serve nearly 83,000 veterans annually.
The University of Colorado Health (UCHealth) plans to build a $63 million Center for Personalized
Medicine and Biomedical Informatics on the Anschutz Medical Campus. The Center will provide
improved healthcare through DNA and molecular testing and will provide services to the Children’s
Hospital Colorado locations throughout Colorado and serve as a resource for the UCHealth system.
Over the next five years, the University of Colorado School of Medicine and Children’s Hospital
Colorado will add clinicians, genetic counselors, advanced practice nurses, DNA banks, a data
warehouse, and analytics tools.
UCH began construction of four previously unfinished floors in the 12-story expansion tower at the
Anschutz Medical Campus. Three of the floors will be acute care floors for 108 beds and the fourth
floor will hold a 24-bed intensive care unit. The $32 million project is slated for completion in early
2015.
Colorado cancer researchers and medical doctors from the University of Colorado and Colorado State
University partnered to conduct a $200,000 feasibility study for a proposed $300 million center at CU
Anschutz. The center would be home to the nation’s first carbon-ion radiotherapy facility. The
collaborators signed a memorandum of understanding to pursue the project with Poudre Valley
Hospital in Fort Collins and carbon-ion radiotherapy pioneers at the National Institute of Radiological
Sciences in Japan.
The Anschutz Medical Campus also includes facilities for University Physicians, Inc., the University of
Colorado Cancer Center, the Barbara Davis Center for Childhood Diabetes, the Eleanor Roosevelt
Institute, and the Webb-Waring Center.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 5
HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
Northern Colorado Healthcare Assets
UCHealth provides evidence-based healthcare and wellness services in Colorado, Nebraska, and Wyoming and
includes UCH in Aurora, Poudre Valley Hospital in Fort Collins, Medical Center of the Rockies in Loveland,
Mountain Crest Behavioral Healthcare Center, Colorado Health Medical Group, and other clinics and outpatient
services.
Located 50 miles north of Denver, the North Colorado Medical Center (NCMC) in Greeley is rated nationally
among the top 2 percent of hospitals for clinical quality. NCMC’s specialties in cardiology, pulmonary,
gastroenterology, and critical care are among the top in the nation. NCMC serves as a regional medical center
with community-based and specialty services covering southern Wyoming, western Nebraska, western
Kansas, and northeastern Colorado. Designated as a Level II Trauma Center, NCMC offers patients state-ofthe-art technology such as iCare and a telehealth program.
The McKee Medical Center, an acute-care hospital serving the Loveland community, is a leader in healthcare
innovation through its latest cancer treatments and offers a full range of inpatient and outpatient services, and
is a regional center for robotic surgery. McKee Medical Center also offers an intelligent obstetrics program, a
computerized system designed to reduce the chances of complications during labor and delivery.
Northern Colorado’s healthcare and wellness organizations expanded their presence in 2014.
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UCHealth plans to build a 24-hour emergency center at its Harmony Campus in Fort Collins. The $12.3
million, 16,580-square-foot emergency center will have 12 private exam rooms, computed
tomography, ultrasound, basic X-ray services, a retail pharmacy, and an outpatient laboratory.
Banner Health continued construction on its new Fort Collins hospital, part of a 28-acre campus that
will also include an outpatient clinic and medical office building. The Banner Fort Collins Medical Center
will include an emergency department, a 24-bed inpatient unit, labor and delivery rooms, medical
imaging, surgical services, and laboratory services. The hospital is slated to open in 2015.
Poudre Valley Hospital plans to expand and renovate its existing hospital. The $102 million project
includes the construction of a two-story building with a new emergency department, expanded
orthopedic wing, and a new laboratory. The building will house a helicopter landing pad on the roof
and a new parking lot will be added.
Major Project Updates and Facility Expansions
A number of major nine-county region hospital projects and facility expansions were either completed or
moved forward in 2014.
•
•
•
•
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The new National Jewish Health-Saint Joseph Hospital opened in December. The $623 million,
831,000-square-foot facility replaced the hospital’s existing facility and includes a hybrid operating
room that will allow physicians to treat major cardiac problems using both invasive and non-invasive
procedures and alleviate the need to move patients between operating rooms during surgery.
Swedish Medical Center will expand its stroke and neuroscience programs. The $50 million project
includes renovations to 28,000 square feet of existing space and adding 65,000 square feet, including
the addition of 39 beds specific to the neuroscience program, a new neurocritical care unit, and two
additional floors to the south tower.
Littleton Adventist Hospital plans to renovate and expand its existing building. The $30 million project
includes expansion of the pre-operation and post-operation surgery areas, interventional radiology
services, and cardiac services. The hospital will also install new technology for radiation and cardiac
services, as well as build more conference space. The hospital celebrated its 25th anniversary in 2014.
Construction continued on Centura Health’s St. Anthony North Health Campus in Westminster. The
350,000-square-foot project includes a Level III trauma center and emergency department, an
ambulatory surgery center with inpatient surgery capabilities, a women’s health center, outpatient
diagnostics and treatment center, and inpatient beds. The facility will incorporate the company’s
health neighborhood approach and is slated for completion in early 2015.
Platte Valley Medical Center opened in Commerce City and will serve as the first primary care medical
building to open in the Reunion community. The $3.7 million, 12,000-square-foot center provides
access to four medical practices including Eagle Ridge Medical Family Medicine, Integrative Internal
Medicine, Premier Pediatrics, and Alcott Women’s Care.
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HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
•
Jefferson County will be the site of a small, new hospital, located at the corner of Wadsworth
Boulevard and Coal Mine Avenue. The new building will be a boutique hospital, a hospital designed for
personalize care and high-volume surgeries.
Key Company Announcements
Notable healthcare and wellness company expansions and announcements in 2014 included:
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Centura Health opened three new health and wellness centers in north Denver as part of the
provider’s new neighborhood health program. The centers, located in Dacono, Thornton, and
Westminster, offer primary care, specialty services, diagnostic imaging, and wellness services.
Denver-based InnovAge opened its newest senior services center in Denver. The 36,000-square-foot
facility will employ 200 people and could service 1,000 seniors. The company currently operates five
locations along the Front Range and offers health, dental, vision, psychiatric care, X-ray services, and
physical therapy services.
SCL Health relocated its headquarters to Broomfield, leasing an additional 104,683 square feet of
space. SCL relocated the human resources, finance, and legal departments, as well as the executive
and corporate communications office from downtown Denver. The move will retain 920 jobs at the
Broomfield campus and allow the company to expand by 150 positions in the future.
The Stout Street Health Center opened in Denver, the only facility of its kind in the country. The $35
million, 53,190-square-foot facility integrates total healthcare with housing for homeless individuals
and allows the organization to serve 50 percent more people. The Center includes general physician
care, vision, dental, pharmacy, mental health, and addiction counseling services.
Boulder Brands Inc. plans to expand its downtown Boulder corporate headquarters, more than
doubling its current location by 25,000 square feet. The expansion will allow for an additional 50
employees and an “innovation kitchen” for new idea development, quality control, and education and
training.
Louisville-based Door to Door Organics Inc. secured more than $25 million in Series B funding. The
funding will help the company accelerate expansion into new markets, resulting in the addition of new
employees in operations, merchandising, and technology.
Purely Elizabeth, a local natural and organic foods company, relocated its headquarters from New York
City to Boulder. The company’s move was motivated by a need to be closer to their manufacturing
center and to enter into the local organic foods network. After the relocation, the company secured a
contract with Target to sell their products in 1,789 stores nationwide.
Health Tourism Announcements
The nine-county region is a growing health tourism hub, offering high-quality healthcare facilities, a highly
skilled workforce, and specialized medical services. Notable developments in 2014 included:
•
•
•
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Construction continued on Craig Hospital’s $90 million expansion and renovation project. Phase 1 of
construction was completed in 2014 with the new addition and PEAK Center open. Phase 2 of
construction began in August 2014, which will finish the interiors of the new fourth floor Spinal Cord
Unit, the spinal cord injury therapy gym, and Adaptive Technology Lab. The project is slated for
completion in 2016.
The town of Estes Park broke ground on a $30 million health and wellness facility on land adjacent to
the Stanley Hotel. The Stanley Hotel/Anschutz Medical Center for Wellness will create 70 new jobs and
includes a 15,000-square-foot training center, a wellness center, and 13,000 square feet for physician
lodging.
The University of Colorado Anschutz Health and Wellness Center (AHWC) was featured in an ABC
documentary series. The Center offers some of the nation’s most advanced research, focusing on a
comprehensive wellness approach, including weight loss and management, fitness, and nutrition.
Following the documentary, it started the AHWC Destination Weight Loss program, which offers a
weeklong boot camp in Denver and continued weight loss and wellness goal monitoring remotely for
an entire year.
The Colorado Center for Reproductive Medicine (CCRM) is one of the nation’s leading fertility clinics,
providing a wide variety of treatments ranging from basic infertility care to the most advanced
technology available. Two-thirds of CCRM’s patients travel to Colorado from other states and countries
for treatment. It is internationally recognized for success rates and scientific achievements in the field
of reproductive endocrinology.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 7
HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
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National Jewish Health is a worldwide leader in treating patients with respiratory, cardiac, immune,
and related disorders, and for groundbreaking medical research. Founded in 1899 as a nonprofit
hospital, National Jewish Health remains the only facility in the world dedicated exclusively to these
disorders. Roughly 30 percent of National Jewish's patients come from out-of-state to receive
pulmonology care.
The Medical Center of Aurora is a leader in cardiovascular care and hosts the largest atrial fibrillation
center in the Rocky Mountain region. In addition, the center’s main campus and Centennial Medical
Plaza are accredited chest pain centers by the Society of Chest Pain Centers and operate a
state-of-the-art heart care tower on its main campus.
Major Collaborations and Partnership Activity
2014 was notable for increased partnerships and collaborations among the region’s healthcare and wellness
organizations.
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DaVita HealthCare Partners Inc. and Centura Health collaborated to improve patient healthcare. The
two companies will offer differentiated healthcare delivery models called Colorado Health
Neighborhoods, which are intended to lower patient costs and optimize healthcare value. The
partnership provides primary care physicians, specialists, and Centura facilities with tools such as
disease management and patient care coordination.
National Jewish Health and SCL Health signed a joint operating agreement that will allow healthcare
providers to handle clinical care together at the new National Jewish Health-Saint Joseph Hospital.
Under the agreement, National Jewish will provide outpatient services and SCL Health will provide the
inpatient services.
HCA-HealthONE partnered with Nashville, Tenn.-based Sarah Cannon Cancer Network of Excellence to
increase access to clinical tests and improve coordinated cancer care. The initiative is designed for
patients to gain access to innovative therapies and clinical trials and enhance patient navigation across
facilities.
Three SCL Health System’s hospitals based in Metro Denver successfully connected to the health
information exchange (HIE) network at the Colorado Regional Health Information Organization. Good
Samaritan Medical Center in Lafayette, Lutheran Medical Center in Wheat Ridge, and Saint Joseph
Hospital in Denver provide care to more than 100,000 residents. The HIE provides access to health
information on patients such as hospital discharge notifications, lab test results, X-ray and other
imaging reports, and referral information to doctors.
Cross-Cluster Convergence
The nine-county region is characterized by its network of collaboration, innovation centers, and unique assets
that lead to cross-cluster convergence. The healthcare and wellness industry combines these regional assets
to strengthen partnerships and enhance growth opportunities across industries such as digital health and
IT-software.
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Metro Denver is an emerging digital health community nationally. Founded in July 2012 by the Denver
South Economic Development Partnership and Innovation Pavilion, PrIME Health Collaborative is a
growing statewide community of 700+ health care executives, physicians, technologists, academics,
entrepreneurs, and investors dedicated to improving health and lowering healthcare costs through the
commercialization of digital health technologies. The Collaborative is a resource ecosystem for Digital
Health—the convergence of the digital and genetics revolutions with bioscience, healthcare and
wellness, and information technology-software. In 2014, the Collaborative held a number of important
events showcasing the Digital Health Corridor, including a first-of-its kind $150,000 Digital Health
Challenge. More information at www.primehealthco.com/challenge.
The University of Colorado launched the first curriculum focused on digital health, using the
business-academic partnership. The program will help prepare the newest generation and newest
specialty of technology workers in Colorado.
Boulder-based Kindara launched Wink, a wireless fertility thermometer to help women easily record
their basal body temperature readings. Wink synchronizes with Bluetooth technology to the Kindara
fertility app on a user’s mobile devices and provides an integrated fertility charting experience.
Two Metro Denver technology companies—Highlands Ranch-based Zen Planner and Denver-based
PaySimple—partnered to help fitness and dance studios manage their business using cloud-based
Metro Denver Economic Development Corporation | January 29, 2015 | Page 8
HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
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infrastructure. Zen Planner focuses on scheduling, booking, and business management software,
which connects to PaySimple’s payment-processing and payments software.
Aurora-based Analytical Decision Services LLC designed a program to simulate how healthcare
facilities can improve efficiencies and manage an influx of patients. The company created a
four-dimensional portrayal of a healthcare system and can add and subtract different factors that will
analyze the way the organization handles patients and care.
Centennial-based Thinklabs designed a new digital stethoscope, which is compatible with iPhone and
iPad technology. The Thinklabs One stethoscope is Bluetooth compatible for wireless transmission, has
an earphone jack that is compatible with different headphone models, and has volume control to
enhance the sound up to 100 times louder than the traditional model.
Research and Development Awards
The region’s healthcare and wellness companies and organizations received notable awards in 2014.
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The Centers for Medicare and Medicaid Services awarded Colorado health policy leaders $65 million to
develop a plan to integrate physical and mental healthcare. The State Innovation Model funding is
designed to provide support to states for the development and testing of state-based models for
multi-payment and healthcare delivery system transformation aimed at improving health system
performance. Colorado’s model, the Statewide Health Innovations Fostering Transformation program,
supports the formation of integrated primary care providers, developed within the framework of the
state’s existing Medicaid Accountable Care Collaborative.
DaVita Kidney Care, a division of DaVita Healthcare Partners Inc., received two Dorland Health “Case
In Point” Platinum awards. The awards are given to companies that have the most successful and
innovative case-management programs working to improve healthcare. DaVita’s model includes
collaborating with patients, physicians, health systems, Accountable Care Organizations, and payers to
provide integrated care. The two programs to receive the awards were Patient Pathways and
VillageHealth.
The Caring for Colorado Foundation awarded $2.7 million in grants to 51 mental, oral, and safety-net
healthcare organizations across Colorado. The beneficiaries included Western slope schools, behavioral
health and programs for disadvantaged students, and extended health coverage for the uninsured.
Denver-based myStength.com received $1.5 million from the Colorado Health Foundation to develop
an online behavioral health program that offers mental-health checks, affirmations, and other help.
The funding will allow the company to increase capacity and bring the e-platform to public and private
clients.
Industry Infrastructure Support
The nine-county region is home to numerous organizations that promote wellness.
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Colorado hosted the fourth annual USA Pro Cycling Challenge in summer 2014. The 550-mile route
through eight host cities from Aspen to Denver generated $130 million in economic impact for the
state. Riders from 16 international, professional teams took place in the race, challenging the course’s
40,000 feet of vertical climbing and technical descents.
Colorado’s northeastern plains communities hosted the third annual Pedal The Plains bicycle tour in
2014. More than 1,000 registered cyclists participated in the event to celebrate the agricultural roots
and frontier heritage of the state’s Eastern Plains. The three-day ride covered more than 170 miles
and showcased the host communities of Wiggins, Fort Morgan, and Sterling.
Flat 14ers is an initiative to encourage children, families, teachers, and community members to
increase their levels of physical activity by climbing virtual 14,000-foot mountain peaks (14ers). The
online tracking system provides individuals an easy and fun way to become active and stay active by
converting minutes of physical activity such as running, playing basketball, cycling, or walking into
steps toward reaching the summit of a 14er. The initiative is part of the Tri-County Health
Department’s Communities Putting Prevention to Work Grant with partners including school districts,
parks and recreation agencies in Adams, Arapahoe, and Douglas Counties, CBS4, America On the
Move, and Children’s Hospital Colorado.
The Colorado Health Foundation (CHF) is one of the largest health-focused foundations in the country,
providing grants to nonprofits with the focus on encouraging healthy living. Located in Denver, CHF
works to increase accessibility to quality healthcare, provides graduate medical education to increase
the healthcare workforce, and works with foundation partners to address health issues in Colorado.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 9
HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
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CHF hosts the annual Colorado Health Symposium which is one of the leading national health policy
conferences in the nation.
The Colorado Trust was formed in 1985 as a dedicated foundation to advance the health and
well-being of Coloradans. The Trust collaborates with individuals, organizations, and communities
across the state to expand health coverage and improve the healthcare system. Through grant
support, the Trust is dedicated to achieving access to health for all Coloradans by 2018.
Healthcare and Wellness Workforce Profile
Many companies choose locations because
of the available workforce. With nearly half
of the nine-county region’s 3.6 million
residents under the age of 35, employers
can draw from a large, young, highly
educated, and productive workforce. Of the
region’s adult population, 41.2 percent are
college graduates and 90.5 percent have
graduated from high school. The state has
the nation’s second-most highly educated
workforce as measured by the percentage
of residents with a bachelor’s degree or
higher.
The attractiveness of the region draws new
residents through migration. The region’s
population is expected to grow 53.3 percent
from 2010 to 2040, driving a 36.3 percent
increase in the region’s labor force over the
same period. It is important to note the
changing composition of the workforce
supply as the baby boomers begin to retire,
which will pose implications for businesses
whose employee pool includes significant
numbers of these workers.
The nine-county region’s healthcare and
wellness industry cluster employs 192,290
people and includes a large pool of talented,
well-educated, and highly skilled workers.
Compared with the age distribution across
all industries, the healthcare and wellness
cluster has a larger share of employees that
are between the ages of 25 and 44 years
old.
Educational Attainment of Metro Denver and Northern
Colorado's Population Age 25 and Older
Less than 9th
Grade
3.9%
Graduate or
Professional
Degree
15.3%
9th to 12th Grade,
No Diploma
5.6%
High School
Graduate
(includes
equivalency)
20.0%
Bachelor’s
Degree
25.9%
Some College,
No Degree
21.7%
Associate Degree
7.7%
Source: U.S. Census Bureau, 2013 American Community Survey.
3,000,000
Metro Denver and Northern Colorado's Labor Force
Projections by Age
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2010
16-24
2020
25-34
35-44
2030
45-54
55-64
2040
65+
Source: Colorado Division of Local Government, State Demography Office.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 10
HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
The healthcare and wellness workforce
supply consists of four main components:
those currently working in the industry;
those doing a similar type of job in some
other industry; the unemployed; and those
currently in the education pipeline. The
Metro Denver and Northern Colorado
Occupation & Salary Profile below includes
the 10 largest healthcare and wellness
occupations in the region. For these 10
largest occupations, the chart details the
total number of workers employed in that
occupation across all industries, the number
of available applicants that would like to be
working in that occupation, the number of
recent graduates that are qualified for that
occupation, and the median and sample
percentile annual salaries.
Metro Denver and Northern Colorado's Distribution of
Employment by Age
30%
25%
20%
15%
10%
5%
0%
16-24
25-34
35-44
45-54
Healthcare & Wellness
55-64
65+
All Industries
Source: Provided by Arapahoe/Douglas Works! QCEW Employees, Non-QCEW Employees, Self Employed, &
Extended Proprietors - EMSI 2014.3 Class of Worker.
Wages
The 2013 average annual salary for a healthcare and wellness worker in the nine-county region was $53,440,
compared with the national average of $52,690. Total payroll for the healthcare and wellness cluster in the
region reached nearly $9.8 billion in 2013.
Metro Denver and Northern Colorado Healthcare and Wellness Occupation & Salary Profile, 2014
10 Largest Healthcare and
Wellness Occupations
in Metro Denver and Northern
Colorado
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Registered nurses
Personal care aides
Nursing assistants
Home health aides
Business operations
specialists, all other
Receptionists &
information clerks
Medical assistants
Secretaries &
administrative assistants,
except legal, medical, &
executive
Clinical, counseling, &
school psychologists
Medical secretaries
Total
Working Number of
Across All Available
Industries Applicants
(2014)
(2014)
Number of
Graduates
(2013)
1,938
182
1,504
209
Median
Salary
$69,742
$20,613
$28,038
$23,192
10th
Percentile
Salary
25th
Percentile
Salary
75th
90th
Percentile Percentile
Salary
Salary
77
$69,930
$36,067
$50,024
$92,622 $120,078
31,803
20,808
12,652
10,103
374
572
1,076
477
$50,523
$17,160
$22,443
$17,992
$58,490
$18,595
$24,960
$20,218
$83,117
$22,734
$32,302
$28,101
$93,350
$24,294
$36,338
$32,531
32,981
792
16,313
2,349
0
$30,139
$20,550
$25,168
$36,338
$43,618
7,162
779
1,365
$34,050
$26,603
$29,702
$38,480
$44,242
49,635
650
71
$36,026
$23,587
$29,037
$43,992
$51,979
6,589
17
2,261
$55,723
$41,080
$48,214
$65,749
$72,779
5,750
352
173
$34,216
$24,814
$29,078
$39,853
$46,467
Notes: The number of available applicants is a point-in-time measurement of the number of people who have registered in Colorado’s
workforce development system’s statewide database, Connecting Colorado, as being able and available to work in a particular occupation.
Results should be interpreted with caution since registration in Connecting Colorado is self-reported. In addition, the skills rubric may assign
up to four occupation codes for each registrant. Therefore, the number of available applicants could be inflated. Source: Provided by
Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2014.3 Class of Worker.
Education & Training
Colorado’s higher education system provides an excellent support system for businesses in the region. There
are 28 public higher education institutions in Colorado, of which seven four‐year and six two‐year public
institutions offering comprehensive curricula are located in the nine‐county region. In addition, there are more
than 100 private and religious accredited institutions and nearly 340 private occupational and technical
schools offering courses in dozens of program areas throughout the state. Although not exhaustive, a list of
the major, accredited educational institutions with the greatest number of graduates for each of the 10 largest
healthcare and wellness occupations in the nine-county region are included below. A directory of all higher
education institutions with corresponding websites may be accessed via http://highered.colorado.gov.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 11
HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
•
Colorado School of Traditional
Chinese Medicine
www.cstcm.edu
•
Jones International University
www.jiu.edu
•
University of Colorado Boulder
www.colorado.edu
•
Concorde Career College – Aurora
www.concorde.edu
•
Metropolitan State University of
Denver
www.msudenver.edu
•
University of Colorado Denver
www.ucdenver.edu
•
Emily Griffith Technical College
www.emilygriffith.edu
•
Pima Medical Institute – Denver
Campus
www.pmi.edu
•
University of Colorado Denver
School of Medicine
www.medschool.ucdenver.edu
•
Front Range Community College
www.frontrange.edu
•
Regis University
www.regis.edu
•
University of Northern
Colorado
www.unco.edu
•
Institute of Taoist Education and
Acupuncture, Inc.
http://itea.edu
•
Southwest Acupuncture College
www.acupuncturecollege.edu
Key Reasons for Healthcare and Wellness Companies to Locate in
the Nine-County Region
The region is a top healthcare and wellness location offering:
1. A robust culture of health and wellness
•
Colorado is the leanest state with the nation’s lowest rate of adult obesity (21.3 percent). (Trust for
America’s Health, 2014; Robert Wood Johnson Foundation, 2014)
•
Colorado has the highest participation in physical activities with nearly 62 percent of the state’s adults
participating in 150 minutes of moderate or vigorous physical activity per week. (The Henry J. Kaiser
Family Foundation, 2014)
•
Colorado ranked as the eighth-healthiest state in the nation and had the lowest rates of obesity,
physical inactivity, and diabetes. (United Health Foundation, 2014)
•
Metro Denver ranked as the fourth-fittest metro area in the nation in 2014. Denver’s high percentage
of residents participating in physical activity, and low obesity and cardiovascular disease rates
contributed to its high rank. (American College of Sports Medicine, 2014)
•
Colorado has the fourth-highest percentage of state land area devoted to the National Forest System.
The state offers access to more than 50 national parks and wilderness areas, 42 state parks, and the
greatest number of 14,000-foot peaks in the nation that support a healthy, active lifestyle. (U.S.
Forest Service, 2014; Colorado State Parks, 2014)
•
The park facilities in Denver and Aurora ranked among the top 10 best in the nation in 2014. (The
Trust for Public Land, 2014)
•
The City and County of Denver has the nation’s largest city park system with more than 200 parks and
more than 34,000 acres of parks located in the nearby mountains. (Metro Denver Economic
Development Corporation)
•
More than 100 public and private golf courses are located throughout Metro Denver. In addition, 11
world-class ski resorts are within 100 miles. (Metro Denver Economic Development Corporation)
•
Boulder and Fort Collins ranked among the top five metro areas for residents’ overall health and
well-being. Colorado ranked seventh for its residents’ overall well-being. (Gallup-Healthways, 2014)
•
Douglas County ranked as the healthiest county in Colorado. Boulder (fourth), Broomfield (ninth), and
Larimer (10th) were also included in the top 10. (University of Wisconsin Population Health Institute,
2014)
•
Colorado scored among the top 10 in the nation on four of the six healthy aging indicators. The state’s
older adults had the highest rate of physical activity of any state and ranked eighth for immunization
rates. (Colorado Health Foundation, 2014)
•
Colorado ranked as the sixth-healthiest state for adults ages 65 years and older. Colorado’s seniors
have the second-lowest prevalence of obesity, high rates of physical activity, low percentage of
hospital deaths, and low premature death rate. (United Health Foundation, 2014)
•
Colorado’s nearly 350 organically-certified farmers, ranchers, and food processors account for
approximately 10 percent of overall U.S. sales of organic products. Colorado ranked as the nation’s
Metro Denver Economic Development Corporation | January 29, 2015 | Page 12
HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
largest producer of organic wheat and ranked third in organic millet and organic lettuce production.
(Colorado Department of Agriculture, 2014)
2. The ability to recruit and retain a healthy, skilled, and productive workforce
•
Healthy employees are more productive, have less absenteeism, and cost an average of $4,000 less
each year in healthcare costs than unhealthy employees. (University of Michigan Health Management
Research Center, 2014)
•
Of Colorado’s adult population, nearly 38 percent has completed a bachelor’s or higher-level degree,
making Colorado the second-most highly educated state in the nation behind Massachusetts. (U.S.
Census Bureau, 2013 American Community Survey)
•
Colorado ranked ninth in the number of science and engineering graduate students per 1,000
individuals ages 25 to 34 years old in 2011. (National Science Foundation, 2014)
•
Denver ranked as the seventh-best city for millennials (ages 25-34) out of 25 major cities with a
population over 1 million in 2014. (Niche.com, 2014)
•
The Denver-Aurora-Broomfield MSA was named to the top 10 list of “Best Big Cities for Jobs 2014.”
(Forbes, 2014)
•
Denver ranked as the ninth-best city for college graduates and received accolades for its highly
educated population, moderate cost of living, and higher-than-average wages. (NerdWallet, 2014)
•
The Colorado Rural Health Center’s Colorado Provider Recruitment program focuses on expanding the
primary care workforce throughout Colorado’s rural and urban underserved healthcare communities
(Colorado Rural Health Center, 2014)
3. The convergence of health-related education, research, and application
•
The University of Colorado School of Medicine ranked 13th nationally for primary care and 40th among
research-oriented programs. Three School of Medicine specialties ranked among the top 10 including
family medicine (fifth), pediatrics (sixth), and rural medicine (ninth). (U.S. News & World Report,
2014)
•
Three Metro Denver institutions ranked among the nation’s “Best Online Graduate Nursing Programs.”
The College of Nursing at the University of Colorado ranked 10th, Loretto Heights School of Nursing at
Regis University ranked 37th, and American Sentinel in Aurora ranked 41st. (U.S. News & World
Report, 2014)
•
The University of Colorado’s School of Medicine graduates about 150 medical students per year and
offers programs in dental medicine, medicine, nursing, pharmacy, and public health. (University of
Colorado, 2014)
•
The University of Colorado Denver and Red Rocks Community College are Metro Denver’s only
institutions with accredited entry-level physician assistant programs. (Colorado Health Institute, 2014)
•
The College of Nursing at the University of Colorado was the birthplace of the first nurse practitioner
program in the world. The College’s Pediatric Nurse Practitioner specialty program ranked among the
top five in the nation. (University of Colorado, 2014; U.S. News & World Report, 2014)
•
The Organic Business Initiative at the University of Colorado Boulder’s Deming Center for
Entrepreneurship fosters entrepreneurial leaders, world-class scholarship, and research in natural and
organic business. (The University of Colorado, 2014)
•
The Colorado School of Public Health (CSPH) is the first accredited and only collaborative school of
public health in the Rocky Mountain region. CSPH is home to three nationally funded research and
training centers. (The Colorado School of Public Health, 2014)
•
The University of Colorado ranked among the nation’s top 25 institutions in total National Institutes of
Health funding totaling $162.8 million in fiscal year 2013. (National Institutes of Health, 2014)
4. A regional health hub, with expanding medical and wellness tourism opportunities
•
HealthGrades named a number of nine-county region hospitals to their 2014 lists. Seven earned the
2014 Distinguished Hospital Award for Clinical Excellence, three ranked among “America’s 100 Best
Hospitals, four received awards for Women’s Health Excellence, and four won awards for Outstanding
Patient Experience. (HealthGrades, Inc., 2014)
•
Twelve Metro Denver hospitals received “A” grades in hospital safety, 10 hospitals received a “B”
grade, and three received a “C” grade. (The Leapfrog Group, 2014)
•
Three Metro Denver hospitals were named to Truven Health Analytics “100 Top Hospitals” in 2014
including North Colorado Medical Center (Greeley), the University of Colorado Hospital (UCH)
(Aurora), and Rose Medical Center (Denver). (Truven Health Analytics, 2014)
Metro Denver Economic Development Corporation | January 29, 2015 | Page 13
HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
•
•
•
•
•
The Barbara Davis Center for Childhood Diabetes is one of the largest diabetes programs specializing
in Type 1 diabetes research and care for children and adults in the world. (The Barbara Davis Center
for Childhood Diabetes, 2014)
Seven Metro Denver healthcare facilities have received Magnet status—the most prestigious
recognition of nursing excellence. (American Nurses Credentialing Center, 2014)
Children’s Hospital Colorado (CHC) ranked as the sixth-best children’s hospital in the nation with six of
its specialty areas also in the top 10 in their respective categories. CHC was also named to the U.S.
News’ Honor Roll and ranked fifth on Parents magazine’s “10 Best Children's Hospitals in America” list.
(U.S. News & World Report, 2014; Parents, 2014)
Eleven Metro Denver hospitals were named to the 2014-2015 “Best Hospitals.” UCH ranked as the top
facility in Metro Denver and ranked nationally in nine specialties. (U.S. News & World Report, 2014)
HCA-HealthONE’s Rocky Mountain Hospital for Children (RMHC) houses the region’s largest neonatal
intensive care unit and the largest high-risk obstetrical program. RMHC cares for infants, children, and
teenagers across a six-state region. (Rocky Mountain Hospital for Children, 2014)
5. An overall better quality of life
•
Castle Rock ranked fourth in MONEY Magazine’s 2014 list of the “Best Places to Live.” Centennial
(13th) and Boulder (23rd) were also named to the list’s top 50. (MONEY Magazine, 2014)
•
Boulder ranked second on the 2014 list of the “Top 100 Best Places to Live.” Aurora (50th) and
Lakewood (88th) were also named to the list. (Livability.com, 2014)
•
Aurora and Denver ranked among the top cities in the nation to retire. Aurora ranked 11th in
healthcare and Denver ranked 11th in activities. (WalletHub, 2014)
•
FasTracks, a comprehensive project to build out Metro Denver’s entire mass transit system by 2019, is
the largest simultaneous transit buildout in U.S. history. The expansion will make Metro Denver one of
the top five regions in the country in terms of miles of fixed rail.
Healthcare and Wellness Industry Cluster Definition
NAICS Code*
315220
(P)
NAICS Description
Men's & boys' cut & sew apparel mfg.
SIC Code
2329-01
315240
(P)
Women's, girls', & infants' cut & sew apparel mfg.
2339-03
336991
339115
(P)
(P)
Motorcycle, bicycle, & parts manufacturing
Ophthalmic goods mfg.
3751-02
3851
Dental laboratories
Sporting & athletic goods mfg.
Medical, dental, & hospital equip. & supplies
merchant wholesalers
8072
3949
5047
Ophthalmic goods merchant wholesalers
Sporting & recreational goods & supplies merchant
wholesalers
Drugs & druggists sundries merchant wholesalers
Footwear merchant wholesalers
Other grocery & related products merchant
wholesalers
Food (health) supplement stores
Home health equipment rental
Recreational goods rental
Sports & recreation instruction
Educational support services
Offices of physicians (except mental health
specialists)
Offices of physicians (except mental health
specialists)
Offices of physicians, mental health specialists
Offices of physicians, mental health specialists
Offices of dentists
Offices of chiropractors
5048
5091
SIC Description
Men's & boys' sportswear & athletic
clothing
Women's & misses' athletic clothing &
sportswear
Bicycles & related parts
Ophthalmic goods (except intraocular
lenses)
Dental laboratories
Sporting & athletic goods, NEC
Medical, dental & hospital equip. &
supplies (merchant wholesalers except
those selling medical, dental, and
hospital equipment and supplies via
retail method)
Ophthalmic goods, NEC
Sporting & recreation goods
5122-0310
5139-9902
5149-06
Vitamins & minerals
Footwear, athletic
Organic & diet food
5499-01
7352
7999-9911
7999-11
8299-9910
8011
Health & dietetic food stores
Medical equipment rental
Recreation equipment rental
Instruction schools, camps, & services
Meditation therapy
Offices & clinics of doctors of medicine
8031
Offices & clinics of doctors of osteopathy
8011
8031
8021
8041
Offices
Offices
Offices
Offices
339116
339920
423450
423460
423910
(P)
424210
424340
424490
(P)
(P)
(P)
446191
532291
532292
611620
611710
621111
621111
621112
621112
621210
621310
(P)
&
&
&
&
Metro Denver Economic Development Corporation | January 29, 2015 | Page 14
clinics
clinics
clinics
clinics
of
of
of
of
doctors of medicine
doctors of osteopathy
dentists
chiropractors
HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
NAICS Code*
621320
621330
621340
621391
621399
621410
621410
621420
621491
621492
621493
621498
621511
621512
621610
621910
621991
621999
622110
622110
622210
622210
622310
(P)
623110
623110
623110
623210
623311
623311
623311
624190
624190
624190
624190
624190
624190
624190
624190
624190
624190
624210
713940
713940
713990
812191
812199
812199
813212
813319
923120
(P)
(P)
(P)
(P)
(P)
(P)
(P)
(P)
(P)
(P)
(P)
(P)
(P)
(P)
(P)
Healthcare and Wellness Industry Cluster Definition Cont’d
NAICS Description
SIC Code
SIC Description
Offices of optometrists
8042
Offices & clinics of optometrists
Offices of mental health practitioners (except
8049
Offices & clinics of health practitioners,
physicians)
NEC
Offices of physical, occupational speech therapists, 8049
Offices & clinics of health practitioners,
& audiologists
NEC
Offices of podiatrists
8043
Offices & clinics of podiatrists
Offices of all other miscellaneous health
8049
Offices & clinics of health practitioners,
practitioners
NEC
Family planning centers
8093
Specialty outpatient facilities, NEC
Family planning centers
8099
Health & allied services, NEC
Outpatient mental health & substance abuse
8093
Specialty outpatient facilities, NEC
centers
HMO medical centers
8011
Offices & clinics of doctors of medicine
Kidney dialysis centers
8092
Kidney dialysis centers
Freestanding ambulatory surgical & emergency
8011
Offices & clinics of doctors of medicine
centers
All other outpatient care centers
8093
Specialty outpatient facilities, NEC
Medical laboratories
8071
Medical laboratories
Diagnostic imaging centers
8071
Medical laboratories
Home health care services
8082
Home health care services
Ambulance Services
4119-9902
Ambulance service
Blood & organ banks
8099
Health & allied services, NEC
All other misc. ambulatory health care services
8099
Health & allied services, NEC
General medical & surgical hospitals
8062
General medical & surgical hospitals
General medical & surgical hospitals
8069
Specialty hospitals, except psychiatric
Psychiatric & substance abuse hospitals
8063
Psychiatric hospitals
Psychiatric & substance abuse hospitals
8069
Specialty hospitals, except psychiatric
Specialty (except psychiatric & substance abuse)
8069
Specialty hospitals, except psychiatric
hospitals
Nursing care facilities (skilled nursing facilities)
8051
Skilled nursing care facilities
Nursing care facilities (skilled nursing facilities)
8052
Intermediate care facilities
Nursing care facilities (skilled nursing facilities)
8059
Nursing & personal care facilities, NEC
Residential intellectual & developmental disability
8052
Intermediate care facilities
facilities
Continuing care retirement communities
8051
Skilled nursing care facilities
Continuing care retirement communities
8052
Intermediate care facilities
Continuing care retirement communities
8059
Nursing & personal care facilities, NEC
Other individual & family services
8322-0400
Rehabilitation services
Other individual & family services
8322-0500
Family counseling services
Other individual & family services
8322-0501
Family (marriage counseling)
Other individual & family services
8322-0600
General counseling services
Other individual & family services
8322-0601
Community center
Other individual & family services
8322-0602
Helping hand service (Big Brother, etc.)
Other individual & family services
8322-0603
Multi-service center
Other individual & family services
8322-0605
Outreach program
Other individual & family services
8322-0608
Self-help organization, NEC
Other individual & family services
8322-08
Substance abuse counseling
Community food services
8322-9901
Meal delivery program
Fitness & recreational sports centers
7991
Physical fitness facilities
Fitness & recreational sports centers
7999-9910
Recreation center
All other amusement & recreation industries
7999-9912
Recreation services
Diet & weight reducing centers
7299-0102
Diet center, without medical staff
Other personal care services
7299-0200
Massage parlor & steam bath services
Other personal care services
7299-0201
Massage parlor
Voluntary health organizations
8399-9906
Health systems agency
Other social advocacy organizations
8399-9905
Health & welfare council
Administration of public health programs
9431
Administration of public health programs
*(P) indicates that only part of the NAICS industry category is represented in the industry cluster definition.
Note: NEC indicates “not elsewhere classified.”
Metro Denver Economic Development Corporation | January 29, 2015 | Page 15
HEALTHCARE AND WELLNESS:
Metro Denver and Northern Colorado Industry Cluster Profile
Healthcare and Wellness Industry Cluster Relationships
Technologies
Support Industries
Agriculture
Aviation
Bioscience
Construction
Education
Financial Services-Insurance
Government
Hardware
Legal
Manufacturing
Medical and Wellness Tourism
Philanthropy
Retail
Software
Sports and Recreation
Telecommunications
Bioinformatics
Biotechnology
Chronic Disease Management Devices
Electronic Health Records
Genomics
Interactive Gaming
Nuclear Medicine
Physiological and Remote Monitoring Devices
Radiology
Robotics
Stem Cells
Telehealth
Telemedicine
Client Industries
Bioscience
Businesses
Consumers
Schools
Healthcare and
Wellness
Infrastructure
Fitzsimons Life Science District
Colorado Science + Technology Park at
Fitzsimons
Anschutz Medical Campus
Children’s Hospitals
Business Incubators and R&D Facilities
Referral Facilities
Academic Research Institutions
General Medical and Specialty Care Hospitals
Research and Teaching Hospitals
Primary Care Hospitals
Nonprofit and Foundation Organizations
Outreach Organizations
Telehealth Networks
School-Based Health Clinics
Resorts and Sports Complexes
Professional Healthcare and Wellness
Organizations
Sports and Training Facilities
Public Health Schools and Organizations
Nutrition, Fitness, and Weight Mgmt. Centers
Poison and Drug Centers
Specialty Outpatient Clinics
Health Information Organizations
Medical Specialty Schools
Mental Health and Substance Abuse Clinics
Counseling and Rehabilitation Centers
For additional information, contact us:
1445 Market Street
Denver, CO 80202-1790
303.620.8092
email: info@metrodenver.org
www.metrodenver.org
Prepared by Development Research Partners, Inc., www.DevelopmentResearch.net
Metro Denver Economic Development Corporation | January 29, 2015 | Page 16
INFORMATION TECHNOLOGY-SOFTWARE:
Metro Denver and Northern Colorado Industry Cluster Profile
Industry Overview
The information technology (IT) cluster supports
business activities in all other sectors of the
economy with a variety of products and services,
ranging from virus protection and other security
programs for computers to specialized, custom
software and computer integrated systems
design. Technology enterprises are highknowledge, human capital-based businesses that
are expanding globally. This industry cluster
report is based on a narrow definition of
information technology to avoid double-counting
workers in other technology clusters such as
telecommunications and aerospace. This analysis
divides information technology into two clusters:
software and hardware.
•
•
Hardware includes companies that
manufacture computers and computer storage solutions to manage and protect business information.
Software, which is covered in this report, includes companies involved in off-the-shelf software
products to custom computer programming, computer facilities management, computer systems
design, and data processing services. Software companies also provide network solutions, web-based
applications, and operating systems.
A broader information technology cluster definition includes companies involved in software, hardware, and
telecommunications. The definition can be expanded to include individuals employed in information technology
occupations across all industries. Using this broader definition, the Colorado Technology Association (CTA)
reports there are approximately 140,000 information technology workers in the state representing more than
10,000 software, Internet, hardware, telecommunications, and related technology companies.
Colorado is a global hub of innovation and entrepreneurship, attracting IT companies, a talented IT workforce,
and significant capital investments. Colorado ranked third in tech-worker concentration for the sixthconsecutive year, with 8.7 percent of the state’s private sector workforce employed in technology firms,
according to the TechAmerica Foundation’s Cyberstates 2013 report. The report also ranked Colorado sixth for
average high-tech wage, 11th for absolute number of high-tech businesses, and 15th for absolute
employment in the high-tech industry. Further, the most recent Cybercities report by the TechAmerica
Foundation ranked Boulder third in tech-worker concentration, while Denver ranked 17th with nearly 9 percent
of private-sector workers employed in technology firms. Denver also ranked 13th for average high-tech wage
as Denver tech workers earned 81 percent more than the average private-sector worker. In 2014, technology
workers in the Denver-Boulder area had the third-highest salaries in the U.S., with an average annual salary
of $98,000, according to TriNet.
The nine-county Metro Denver and Northern Colorado region 1 hosts a vibrant entrepreneurial community and
is an epicenter for startup activity. In 2014, Denver ranked as the fifth-best place for millennial-aged
entrepreneurs and ranked seventh among the “Top 10 Cities for Female Entrepreneurs,” with more than 30
percent of Denver’s businesses that are women-owned, according to NerdWallet. Forbes ranked Denver
second as the best city to launch a startup business out of the 50 most populated cities and was the
ninth-best city in the nation to start a small business, according to NerdWallet. Further, Colorado ranked as
the fifth-most entrepreneurial state in the 2013 Kauffman Index of Entrepreneurial Activity, with 380 new
business owners per 100,000 adults.
Software Economic Profile
The software cluster consists of seven, six-digit North American Industry Classification System (NAICS) codes
including software reproduction, software publishers, custom computer programming, data processing and
hosting, computer facilities management services, and computer systems design services.
1
The nine-county Metro Denver and Northern Colorado region consists of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson,
Larimer, and Weld Counties.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 1
INFORMATION TECHNOLOGY-SOFTWARE:
Metro Denver and Northern Colorado Industry Cluster Profile
The nine-county region ranked ninth out of the 50 largest metro areas in software employment
concentration in 2014. With direct employment of about 46,470 software employees, the region ranked
12th in absolute employment. About 81 percent of Colorado’s software cluster employees work in the region.
Software Employment and Company Profile, 2014
Nine-County Region
United States
46,470
2,900,460
Number of direct companies, 2014
4,530
196,360
One-year direct employment growth, 2013-2014
3.2%
4.1%
Five-year direct employment growth, 2009-2014
9.1%
23.2%
Avg. annual direct employment growth, 2009-2014
1.8%
4.3%
Direct employment concentration
2.5%
2.0%
Direct employment, 2014
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014; Development Research Partners.
Software Employment
The nine-county region’s software
employment (46,470 workers) rose 3.2
percent in 2014, compared with the
previous year’s level, adding nearly
1,440 new jobs over the same period.
About 4,530 software companies
operated in the nine-county region in
2014. Approximately 83 percent of the
region’s software companies employed
fewer than 10 people, while 0.4 percent
employed 250 or more.
IT-Software
Number of Employees Growth Rate
10%
5%
0%
-5%
-10%
2009
2010
2011
2012
Nine-County Region
2013
United States
2014
Avg Annual
Growth
Source: Dun & Bradstreet, Inc., Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 2
INFORMATION TECHNOLOGY-SOFTWARE:
Metro Denver and Northern Colorado Industry Cluster Profile
IT-Software Employment by County, 2014
Broomfield
6.7%
Adams
3.7%
Weld
0.7%
Denver
21.0%
Larimer
6.9%
Douglas
7.8%
Boulder
20.2%
Jefferson
13.1%
Arapahoe
19.9%
Sources: Market Analysis Profile, 2014; Development Research Partners.
IT-Software Employment by Industry Sector, 2014
Computer
facilities
management
0.8%
Custom
computer
programming
services
42.6%
Software
publishing
11.5%
Data processing
& preparation
13.4%
Other computerrelated services
16.3%
Computer
integrated
systems design
15.3%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Major Software Companies
•
CGI Group Inc.
www.cgi.com
•
Pearson eCollege
www.ecollege.com
•
CIBER, Inc.
www.ciber.com
•
Ping Identity
www.pingidentity.com
•
Cisco Systems, Inc.
www.cisco.com
•
Qualfon (formerly Center Partners)
www.qualfon.com
•
Constant Contact, Inc.
www.constantcontact.com
•
Quark Software Inc.
www.quark.com
•
Dātu Health
www.datuhealth.com
•
Rally Software Development Corp.
www.rallydev.com
•
Dot Hill Systems Corp.
www.dothill.com
•
Rivet Software
www.rivetsoftware.com
•
EMC Corporation
www.emc.com
•
SendGrid
www.sendgrid.com
Metro Denver Economic Development Corporation | January 29, 2015 | Page 3
INFORMATION TECHNOLOGY-SOFTWARE:
Metro Denver and Northern Colorado Industry Cluster Profile
Major Software Companies Cont’d
•
Hosting.com
www.hosting.com
•
SofTec Solutions
www.softecinc.com
•
IBM Corp.
www.ibm.com
•
SolidFire Inc.
www.solidfire.com
•
IHS Inc.
www.ihs.com
•
Statêra, Inc.
www.statera.com
•
Intermap Technologies, Inc.
www.intermap.com
•
Swiftpage
www.swiftpage.com
•
Intrado Inc.
www.intrado.com
•
Sybase, Inc.
www.sybase.com
•
JobApp Plus
www.jobappplus.com
•
Tendril
www.tendrilinc.com
•
Latisys
www.latisys.com
•
Transfirst
www.transfirst.com
•
LogRhythm Inc.
www.logrhythm.com
•
TriZetto Corporation
www.trizetto.com
•
MapQuest, Inc.
www.mapquest.com
•
Trulia Inc.
www.trulia.com
•
McKesson Technology Solutions
www.mckesson.com
•
VMware, Inc.
www.vmware.com
•
Oracle Corporation
www.oracle.com
•
Webroot Inc.
www.webroot.com
2014 Industry Highlights
Key Company Announcements
The nine-county region’s IT-software companies expanded their presence in 2014.
•
•
•
•
•
New York-based Signpost, a maker of marketing software, plans to hire 70 new sales representatives,
account managers, and developers. The company opened its Denver office in 2013 and employs about
30 people.
Pellucid Analytics Inc., a software developer, relocated to a 7,000-square-foot building in east Boulder
from downtown Boulder to expand the company. The company expects to increase from 18 employees
to 40 to 50 employees over the next year.
Skookum Digital Works, a technology consulting firm headquartered in Charlotte, N.C., opened its first
satellite office in Denver. The company plans to add 25 employees to the lower downtown office.
JobAdder, an Australian-based online platform for recruitment professionals, relocated its U.S.
operations from San Francisco to downtown Denver and plans to hire an additional 15 employees in
the next year.
OneNeck IT Solutions, an Arizona-based IT firm, broke ground on a $20 million, 35,000-square-foot
data center in unincorporated Douglas County. The Tier 3+ data center will include state-of-the-art
features such as three-factor security authentication, including iris scanners for personnel
identification, multiple levels of redundancy and backup, and an energy-saving cooling design. The
facility is slated to open in early 2015.
Venture Capital and Investment Activity
Entrepreneurs and startup companies in the IT-software industry have attracted significant capital and
investments in the nine-county region. According to Pricewaterhouse Coopers’ MoneyTree Report, Colorado
companies in the IT-software industry have attracted $1.9 billion in venture capital in more than 400 deals,
representing almost 32 percent of the total amount invested across all industries in the state and about 41
percent of all deals over the last 10 years. Further, venture capital has grown over the last five years.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 4
INFORMATION TECHNOLOGY-SOFTWARE:
Metro Denver and Northern Colorado Industry Cluster Profile
Between 2009 and 2013, investments in the IT-software industry rose 35 percent, compared with no change
across all industries in the state.
Venture capital deals and investment opportunities increased for the nine-county region’s IT-software
companies in 2014.
•
•
•
•
•
•
Boulder-based SolidFire closed an $82 million Series D funding round, bringing its total funding to
$150 million to support its cloud storage technology and expand its sales and marketing teams. The
company produces flash memory storage devices to accelerate the retrieval of data from shared
servers in data centers around the world.
Boulder-based LogRhythm Inc. raised $40 million in venture capital funding that will allow it to add
technical staff, develop new products, and expand sales and marketing operations.
SendGrid, a Boulder-based company, raised $20 million in new venture capital funding to grow its
business. The expansion will include additional employees and improved email management for a
more powerful online business tool.
Denver-based Peak raised $16 million in funding to grow its business operations. The data center and
cloud computing company plans to grow its channel-centric cloud platform, expand into additional
markets, and serve a larger client base.
Denver-based Wayin secured $13.1 million in funding to expand its research to TV networks, brands,
agencies, and publishers around the globe and increase engineering to support their technology
roadmap. The company’s social technology platform helps global brands launch, run, monitor, and
measure social media marketing efforts.
Two Metro Denver startups raised a combined $10 million in venture capital investment to fuel
growth. Boulder-based Simple Energy closed on a $6 million investment round to grow its application
development for utility companies, while Denver-based GutCheck Inc. secured $4 million to grow its
online market research services.
Industry Infrastructure Support
The nine-county region’s organizations and professional associations foster growth and opportunity for the
IT-software industry.
•
•
•
•
•
•
Denver hosted the third-annual Denver Startup Week in September 2014. The event showcased the
region’s entrepreneurs, employees, and startup companies fueling innovation in the region with a
specific focus on downtown Denver. Hosted by the Downtown Denver Partnership and the CTA, Denver
Startup Week is a platform to convene all those who are building startups, those who want to build
startups, and those who want to be involved in the community. The 2014 event attracted 7,800
attendees and 700 companies to more than 180 events to celebrate great companies, innovation, and
ideas in the region.
Boulder startup accelerator TechStars is a three-month program that provides up to $18,000 in seed
funding for startups and an optional $100,000 convertible debt note, intensive mentorship and idea
development, and the chance to present to angel investors and venture capitalists for those
companies selected to participate. TechStars is supported by more than 75 different venture capital
firms and angel investors. After graduating from TechStars, companies average more than $1.6
million in outside venture capital.
Galvanize, a technology coworking and office space for digital startups, is helping to attract new
businesses and foster entrepreneurship. The concept combines venture capital, flexible workspace,
and an experimental engineering and business school called gSchool. Galvanize is expanding
throughout Colorado and in San Francisco, having raised $18 million in venture capital to broaden its
education offerings including teaching entrepreneurship and technology skills.
Google Inc. awarded Galvanize $1 million and other assistance to increase female involvement in the
technology community. The funding is expected to raise the number of female entrepreneurs by 25
percent. Galvanize is one of seven companies that received funding from Google Inc.
The first phase of Industry Denver opened in May 2014. The 50,000 square feet of creative and
coworking office space has been fully leased to IT-software companies Uber Technologies Inc.,
Roximity, Zenman, and Spotzer Media Group. Two more phases of the 120,000-square-foot,
two-building complex will be completed by 2015.
Launch Longmont opened in late 2014 and is a new coworking space for entrepreneurs, startups, and
freelancers. The organization will eventually become an incubator and accelerator and its first phase
could accommodate up to 40 people.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 5
INFORMATION TECHNOLOGY-SOFTWARE:
Metro Denver and Northern Colorado Industry Cluster Profile
•
•
•
SCORE Denver provides mentoring and training to entrepreneurs and small business owners either
starting a new business or expanding an existing one. In 2013, SCORE created 67,319 jobs in 38,630
new startup businesses, and mentored and trained 124,617 small business owners and entrepreneurs.
The Blackstone Entrepreneurs Network at the Denver Art Museum launched in early 2014. The new
organization, funded by a three-year, $4 million grant from Blackstone Charitable Foundation, is
designed to help entrepreneurs find resources and thrive in Colorado. The network has a variety of
business advisors in fields for entrepreneurship, technology, biotechnology, and health technology
industries.
SendGrid partnered with TechStars, 500 Startups, and Global Accelerator to provide new startup
companies with access to its program. The SendGrid program will provide subscriptions to their
email-handling technology to all companies entering the accelerator programs. SendGrid manages
other companies’ automated email responses such as confirmation emails sent after an app is
downloaded.
Academic and Education Announcements
The region’s K-12 and higher education systems help prepare students with the vital IT-software and
computer information skills and provide a synergistic climate for the region’s thriving IT-software cluster.
•
•
•
•
•
Regis University opened its College of Computer & Information Sciences, Colorado’s first college fully
dedicated to computer and information sciences. The College of Computer & Information Sciences will
provide classes for technical skills and the impact of technology.
The Colorado State University partnered with Indiana University, the University of Michigan, the
University of Florida, and the University of Wisconsin-Madison to improve the way digital educational
content is shared across universities and delivered to students. The technology consortium launched a
new online platform, Unizin, as a one-stop shop for digital education that allow faculty to design
effective learning experiences and improve how course content is created and delivered to students.
The CTA launched the Colorado Technology Foundation to educate students in technical education and
technology careers. The Colorado Technology Foundation partnered with the Rose Community
Foundation to connect Colorado technology companies with educators and programs to improve
science, technology, engineering, and math (STEM) education.
Catalyze CU, a program designed by the University of Colorado Boulder, will help students launch a
startup. The program is intended to function as a startup incubator and will mentor six teams of 22
student entrepreneurs. The entrepreneurs will be offered grants, space at the Spark Boulder
coworking and innovation center, and mentorship from startup veterans.
Denver Public Schools (DPS) received $7 million in federal Youth CareerConnect grant funds and $2.3
million in philanthropic funding to expand access to STEM education programming. The funding will
further strengthen the STEM partnership between DPS and Colorado School of Mines. During the next
two years, DPS will create new STEM programming at eight high schools that will focus on energy,
engineering, health and medicine, digital careers, finance, information technology, and manufacturing.
Cross-Cluster Convergence
The nine-county region is characterized by its network of collaboration, innovation centers, and unique assets
that lead to cross-cluster convergence. The IT-software industry combines these regional assets to strengthen
partnerships and enhance growth opportunities across industries such as digital health and healthcare and
wellness.
•
•
•
Metro Denver is an emerging digital health community nationally. Founded in July 2012 by the Denver
South Economic Development Partnership and Innovation Pavilion, PrIME Health Collaborative is a
growing statewide community of 700+ health care executives, physicians, technologists, academics,
entrepreneurs, and investors dedicated to improving health and lowering healthcare costs through the
commercialization of digital health technologies. The Collaborative is a resource ecosystem for Digital
Health—the convergence of the digital and genetics revolutions with bioscience, healthcare and
wellness, and information technology-software. In 2014, the Collaborative held a number of important
events showcasing the Digital Health Corridor, including a first-of-its kind $150,000 Digital Health
Challenge. More information at www.primehealthco.com/challenge.
Boulder-based Kindara launched Wink, a wireless fertility thermometer to help women easily record
their basal body temperature readings. Wink synchronizes with Bluetooth technology to the Kindara
fertility app on a user’s mobile devices and provides an integrated fertility charting experience.
Two Metro Denver technology companies—Highlands Ranch-based Zen Planner and Denver-based
PaySimple—partnered to help fitness and dance studios manage their business using cloud-based
Metro Denver Economic Development Corporation | January 29, 2015 | Page 6
INFORMATION TECHNOLOGY-SOFTWARE:
Metro Denver and Northern Colorado Industry Cluster Profile
•
infrastructure. Zen Planner focuses on scheduling, booking, and business management software,
which connects to PaySimple’s payment-processing and payments software.
Analytical Decision Services LLC, an Aurora-based startup, designed a program to simulate how
healthcare facilities can improve efficiencies and manage an influx of patients. The company created a
four-dimensional portrayal of a healthcare system and can add and subtract different factors that will
analyze the way the organization handles patients and care.
Merger and Acquisition Activity
Companies in the nine-county region announced several mergers and acquisitions in 2014.
•
•
•
•
•
•
Douglas County-based TriZetto Corp. sold to New Jersey-based Cognizant Technology Solutions Corp.
The $2.7 billion deal will expand both companies’ offerings and will integrate information technology
services such as consulting and IT infrastructure, and existing delivery models. TriZetto’s 980 area
employees will combine with the 450 Cognizant workers in Colorado.
Denver-based Rivet Software Inc. was purchased by Calif.-based Equity Administration Solutions Inc.
Rivet helps public companies comply with financial reporting requirements. More than 300 public
companies use Rivet’s software and Equity Administration Solutions has more than 900 customers.
Nest Labs, a Google-owned company, acquired Revolv, a Boulder-producer of a hub for smart-home
products. The hub serves as the central brain for app-powered smart-home devices such as locks,
lights, and sprinklers. Revolv will be part of the “Works With Nest” program that helps other smart
home products work with Nest.
Greenwood Village-based Highstreet IT Solution purchased New York City, N.Y.-based Computer
Network Solutions LLC (CNS). CNS is a company that provides telecommunications and engineering
services and offers technology to manage data center and IT infrastructure services. The purchase will
make Highstreet IT 50 percent larger by revenue.
Swiftpage, a software company located in Denver, will sell one of its two lines of business to New York
City, N.Y.-based Infor. Financial. The sale of the customer relationship management software will
allow Swiftpage to focus on small business sales conversion technology. When the sale is complete,
Swiftpage will have about 70 employees in its downtown Denver headquarters.
Oracle Corp. purchased Lafayette-based Front Porch Digital Inc. Front Porch Digital helps its clients
store and manage digital content, managing near 750 petabytes of digital content. Oracle plans to
retain Front Porch Digital’s current employees and executives.
Software Workforce Profile
Many companies choose locations because
of the available workforce. With nearly half
of the nine-county region’s 3.6 million
residents under the age of 35, employers
can draw from a large, young, highly
educated, and productive workforce. Of the
region’s adult population, 41.2 percent are
college graduates and 90.5 percent have
graduated from high school. The state has
the nation’s second-most highly educated
workforce as measured by the percentage
of residents with a bachelor’s degree or
higher.
Educational Attainment of Metro Denver and Northern
Colorado's Population Age 25 and Older
Less than 9th
Grade
3.9%
Graduate or
Professional
Degree
15.3%
9th to 12th Grade,
No Diploma
5.6%
High School
Graduate
(includes
equivalency)
20.0%
Bachelor’s
Degree
25.9%
Associate Degree
7.7%
Some College,
No Degree
21.7%
Source: U.S. Census Bureau, 2013 American Community Survey.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 7
INFORMATION TECHNOLOGY-SOFTWARE:
Metro Denver and Northern Colorado Industry Cluster Profile
The attractiveness of the region draws new
residents through migration. The region’s
population is expected to grow 53.3 percent
from 2010 to 2040, driving a 36.3 percent
increase in the region’s labor force over the
same period. It is important to note the
changing composition of the workforce
supply as the baby boomers begin to retire,
which will pose implications for businesses
whose employee pool includes significant
numbers of these workers.
The nine-county region’s software industry
cluster employs 46,470 people and includes
a large pool of talented, well-educated, and
highly skilled workers. The age distribution
of workers in the software cluster is
concentrated in the younger age brackets,
especially the 35-44 age group. Compared
with the age distribution across all
industries, the software cluster has a larger
share of employees that are between the
ages of 25 and 54 years old.
The software workforce supply consists of
four main components: those currently
working in the industry; those doing a
similar type of job in some other industry;
the unemployed; and those currently in the
education pipeline. The Metro Denver and
Northern Colorado Occupation & Salary
Profile below includes the 10 largest
software occupations in the region. For these
10 largest occupations, the chart details the
total number of workers employed in that
occupation across all industries, the number
of available applicants that would like to be
working in that occupation, the number of
recent graduates that are qualified for that
occupation, and the median and sample
percentile annual salaries.
3,000,000
Metro Denver and Northern Colorado's Labor Force
Projections by Age
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2010
2020
16-24
25-34
2040
2030
35-44
45-54
55-64
65+
Source: Colorado Division of Local Government, State Demography Office.
Metro Denver and Northern Colorado's Distribution of
Employment by Age
35%
30%
25%
20%
15%
10%
5%
0%
16-24
25-34
35-44
Software
45-54
55-64
65+
All Industries
Source: Provided by Arapahoe/Douglas Works! QCEW Employees, Non-QCEW Employees, Self Employed, &
Extended Proprietors - EMSI 2014.3 Class of Worker.
Wages
Total payroll for the software industry cluster in the nine-county region reached nearly $4.5 billion in 2013.
The 2013 average annual salary for software cluster employees in the region was $99,770, compared with
$102,740 nationwide.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 8
INFORMATION TECHNOLOGY-SOFTWARE:
Metro Denver and Northern Colorado Industry Cluster Profile
Metro Denver and Northern Colorado Software Occupation & Salary Profile, 2014
10 Largest Software
Occupations
in Metro Denver and Northern
Colorado
1. Software developers,
applications
2. Computer systems
analysts
3. Software developers,
systems software
4. Computer user support
specialists
5. Computer programmers
6. Web developers
7. Network & computer
systems administrators
8. Computer & information
systems managers
9. Business operations
specialists, all other
10. Sales representatives,
services, all other
Total
Working Number of
Across All Available
Industries Applicants
(2014)
(2014)
Number of
Graduates
(2013)
Median
Salary
10th
Percentile
Salary
25th
Percentile
Salary
75th
90th
Percentile Percentile
Salary
Salary
19,382
340
585
$91,021
$56,056
$71,718
$111,696 $134,472
10,348
367
1,052
$77,771
$53,102
$63,731
$99,715 $136,115
10,055
105
630
$97,136
$64,210
$78,915
$118,685 $140,878
11,626
4,895
4,507
855
359
151
549
480
1,552
$51,126
$74,360
$50,024
$33,675
$47,507
$32,677
$41,018
$57,762
$41,059
$65,083 $79,373
$98,654 $131,102
$61,152 $71,989
8,567
523
696
$78,312
$50,835
$62,816
$95,389 $113,214
5,596
438
1,134
$127,296
$88,109
$105,102
$153,899 $250,890
32,981
789
77
$69,930
$36,067
$50,024
$92,622 $120,078
17,631
1,286
77
$50,877
$24,960
$34,674
$75,546 $110,864
Notes: The number of available applicants is a point-in-time measurement of the number of people who have registered in Colorado’s
workforce development system’s statewide database, Connecting Colorado, as being able and available to work in a particular occupation.
Results should be interpreted with caution since registration in Connecting Colorado is self-reported. In addition, the skills rubric may assign
up to four occupation codes for each registrant. Therefore, the number of available applicants could be inflated. Source: Provided by
Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2014.3 Class of Worker.
Education & Training
Colorado’s higher education system provides an excellent support system for businesses in the region. There
are 28 public higher education institutions in Colorado, of which seven four‐year and six two‐year public
institutions offering comprehensive curricula are located in the nine‐county region. In addition, there are more
than 100 private and religious accredited institutions and nearly 340 private occupational and technical
schools offering courses in dozens of program areas throughout the state. Although not exhaustive, a list of
the major, accredited educational institutions with the greatest number of graduates for each of the 10 largest
software occupations in the nine-county region are included below. A directory of all higher education
institutions with corresponding websites may be accessed via http://highered.colorado.gov.
•
Colorado State University
www.colostate.edu
•
Jones International University
www.jiu.edu
•
University of
Colorado Denver
www.ucdenver.edu
•
Colorado State University Global Campus
www.colostate.edu
•
Metropolitan State University of Denver
www.msudenver.edu
•
University of Denver
www.du.edu
•
DeVry University – Colorado
www.devry.edu
•
Regis University
www.regis.edu
•
Front Range Community College
www.frontrange.edu
•
University of Colorado Boulder
www.colorado.edu
Metro Denver Economic Development Corporation | January 29, 2015 | Page 9
INFORMATION TECHNOLOGY-SOFTWARE:
Metro Denver and Northern Colorado Industry Cluster Profile
Key Reasons for Information Technology Companies to Locate in the
Nine-County Region
The region is a top information technology location offering:
1. The ability to attract and retain high-quality IT professionals and technical talent
•
Of Colorado’s adult population, nearly 38 percent has completed a bachelor’s or higher-level degree,
making Colorado the second-most highly educated state in the nation behind Massachusetts. (U.S.
Census Bureau, 2013 American Community Survey)
•
Colorado had the nation’s sixth-largest employment base in the software publishing industry in 2012.
Further, Colorado had the sixth-highest paid tech workers earning an average wage of $97,100, which
was 98 percent more than the average private-sector worker. (TechAmerica Foundation, Cyberstates
2013: The Definitive State-by-State Analysis of the U.S. High-Tech Industry, 2013)
•
Colorado ranked fourth in the number of scientists and engineers as a share of all occupations in
2012. (National Science Foundation, 2014)
•
Colorado ranked among the top five most innovative states in the nation in the 2014 State Innovation
Index. (U.S. Department of Commerce, 2014)
•
Metro Denver ranked as the ninth‐best metro area for science, technology, engineering, and
mathematics (STEM) graduates in 2014. STEM jobs in Metro Denver represented 8.2 percent of all
occupations and the area’s annual mean wage for STEM jobs was $84,380. (NerdWallet, 2014)
•
Denver ranked ninth on CIO.com’s “11 Best Cities to Find an IT Job 2013.” (CIO.com, 2014)
•
Fort Collins ranked among the top 10 “Most Promising Technology Hubs to Watch in 2014” and
received accolades for its highly educated population, top research facilities, and green technology
environment. (Techie.com, 2014)
•
Colorado ranked sixth in the nation in the 2014 State New Economy Index and earned several top-10
rankings in five broad categories including second in workforce education; third in high-tech jobs; and
sixth in information technology jobs, among others. (The Information Technology and Innovation
Foundation, 2014)
•
The University of Colorado Boulder, the University of Denver, and Colorado State University are
among the “Top 50 Schools for Startups” in the U.S. (Forbes, 2014)
•
Denver ranked seventh among the “Top 10 Cities for Female Entrepreneurs 2014.” More than 30
percent of Denver’s businesses are women-owned. (NerdWallet, 2014)
•
Denver ranked as the ninth-best city for college graduates and received accolades for its highly
educated population, moderate cost of living, and higher-than-average wages. (NerdWallet, 2014)
2. Direct access to a large and growing customer base
•
Colorado ranked fifth in the nation for funds raised per worker from the Small Business Innovation
Research (SBIR) grant program. The state received $25.82 SBIR grants per worker compared with the
U.S. average of $11.15. (U.S. Small Business Administration, 2014; U.S. Bureau of Labor Statistics,
2014)
•
Colorado ranked as the fifth-most entrepreneurial state in the 2013 Kauffman Index of Entrepreneurial
Activity, with 380 new business owners per 100,000 adults. (Ewing Marion Kauffman Foundation,
2014)
•
Colorado ranked ninth for 2013 venture capital investments per $1,000 of gross domestic product.
(PricewaterhouseCoopers, MoneyTree Report, 2014; Bureau of Economic Analysis, 2014)
•
Colorado’s leading exports are computers and electronic products, which accounted for nearly
one-quarter of all Colorado exports in 2013, compared with 13 percent of U.S. exports. (U.S.
Department of Commerce, International Trade Administration, 2014)
3. Low to moderate costs of doing business and a competitive tax structure
•
Colorado's simplified corporate income tax structure based on single-factor apportionment allows
companies to pay taxes based solely on their sales in the state. Along with few regulatory burdens,
Colorado's corporate income tax rate of 4.63 percent is one of the lowest and most competitive tax
structures in the nation. (State of Colorado; The Tax Foundation)
•
Installed or downloaded standardized software products are exempted from state sales and use tax.
The City and County of Denver also exempts custom software products from sales tax. (Colorado
Department of Revenue)
Metro Denver Economic Development Corporation | January 29, 2015 | Page 10
INFORMATION TECHNOLOGY-SOFTWARE:
Metro Denver and Northern Colorado Industry Cluster Profile
•
•
•
Denver ranked as the third-best city in the nation for small business in 2014. Denver had the second
highest average business credit score (649) and 10th average annual revenue ($482,483).
(Biz2Credit, 2014)
Colorado has the nation’s ninth-best tax climate for entrepreneurship and small business. (Small
Business & Entrepreneurship Council, 2014)
Metro Denver ranked fourth among Forbes 2014 “Best Places for Business and Careers” list. Four
other Colorado metropolitan areas were included on the list. The Fort Collins metro area ranked fifth
overall, Greeley ranked 20th, Boulder ranked 23rd, and Colorado Springs ranked 29th. (Forbes, 2014)
4. An overall better quality of life
•
Castle Rock ranked fourth in MONEY Magazine’s 2014 list of the “Best Places to Live.” Centennial
(13th) and Boulder (23rd) were also named to the list’s top 50. (MONEY Magazine, 2014)
•
Metro Denver ranked as the fourth-fittest metro area in the nation in 2014. Denver’s high percentage
of residents participating in physical activity, and low obesity and cardiovascular disease rates
contributed to its high rank. (American College of Sports Medicine, 2014)
•
Colorado has the fourth-highest percentage of state land area devoted to the National Forest System.
The state offers access to more than 50 national parks and wilderness areas, 42 state parks, and the
greatest number of 14,000-foot peaks in the nation that support a healthy, active lifestyle. (U.S.
Forest Service, 2014; Colorado State Parks, 2014)
•
Boulder ranked second on the 2014 list of the “Top 100 Best Places to Live.” Aurora (50th) and
Lakewood (88th) were also named to the list. (Livability.com, 2014)
•
Denver ranked as the seventh-best city for millennials (ages 25-34) out of 25 major cities with a
population over 1 million in 2014. (Niche.com, 2014)
•
FasTracks, a comprehensive project to build out Metro Denver’s entire mass transit system by 2019, is
the largest simultaneous transit buildout in U.S. history. The expansion will make Metro Denver one of
the top five regions in the country in terms of miles of fixed rail.
Information Technology-Software Industry Cluster Definition
NAICS Code
334614
511210
518210
541511
541512
541513
541519
NAICS Description
Software reproducing
Software publishers
Data processing, hosting & related services
Custom computer programming services
Computer systems design services
Computer facilities management services
Other computer related services
SIC Code
7372
7372
7374
7371
7373
7376
7379
SIC Description
Prepackaged software
Prepackaged software
Data processing
Custom computer programming services
Computer integrated systems design
Computer facilities management
Computer related services NEC
Note: NEC indicates “not elsewhere classified.”
Metro Denver Economic Development Corporation | January 29, 2015 | Page 11
INFORMATION TECHNOLOGY-SOFTWARE:
Metro Denver and Northern Colorado Industry Cluster Profile
Information Technology-Software Industry Cluster Relationships
Technologies
Internet
High-Speed Infrastructure
Client Industries
Aerospace
Aviation
Bioscience
Energy
Finance
Geospatial
Healthcare
Telecommunications
Security/Defense
Businesses
Consumers
Support Industries
Computer Hardware
Computer Storage
Telecommunications
Software
Infrastructure
CO Technology Partners
Colorado School of Mines-Computer
Engineering Department
CTA-Colorado Technology Association
CU-Software Engineering Research Lab
DU Center for Tech. Innovation
TechAmerica Foundation
For additional information, contact us:
1445 Market Street
Denver, CO 80202-1790
303.620.8092
email: info@metrodenver.org
www.metrodenver.org
Prepared by Development Research Partners, Inc., www.DevelopmentResearch.net
Metro Denver Economic Development Corporation | January 29, 2015 | Page 12
BROADCASTING AND TELECOMMUNICATIONS:
Metro Denver and Northern Colorado Industry Cluster Profile
Industry Overview
The broadcasting and telecommunications
cluster includes companies that help deliver
voice, data, and video to end users. This
cluster includes landline and wireless
telephone communications companies, radio
and television communications services, and
cable and Internet service providers.
Broadband and mobile technologies have
become more widely accessible business
modes of communication for many
nine-county Metro Denver and Northern
Colorado 1 companies. The advancement of
high-speed Internet connections has helped
to increase the number of employees that
telework or work at home while connected by
information technology. The nine-county
region is one of the nation’s top areas for
teleworking due to the region’s expansive telecommunications infrastructure, the percentage of high-tech
companies, innovative ecosystem, and vibrant workforce. According to the U.S. Census Bureau, Colorado
ranked ninth among the 50 states for the largest percentage of individuals living in a home with a high-speed
Internet subscription, five percent higher than the national average of 78 percent. The downtown Denver WiFi
Zone was among the first in the nation to provide large-scale, public Internet access and several locations
throughout Denver offer free WiFi, including the 16th Street Mall, Skyline Park, and Denver International
Airport. The Denver Regional Council of Government’s Telework Colorado program offers free telework
consulting services for employers in the region including information, materials, expert advice, and customized
programs.
A number of strategic initiatives are underway to expand Colorado’s broadband infrastructure. Colorado has a
five-year strategic plan to enable statewide broadband connectivity by partnering with the private sector to
assure availability to all Coloradans. Further, the Colorado Broadband Data and Development Program was
created via a grant from the National Telecommunications and Information Administration for broadband
mapping and planning. Colorado received funding to continue the assessment of broadband deployment
across the state and engage in planning and outreach activities to promote broadband adoption.
The nine-county region’s governments and local communities use digital technologies to enhance services,
maximize efficiency, and expand information technology networks to better service their population and
streamline operations. Douglas County ranked fifth in the 250,000 to 499,999 population category of the
“2014 Digital Counties Survey.” The city of Denver ranked seventh in the more than 250,000 population
category, the city of Fort Collins ranked seventh in the 125,000 to 249,999 population, and the cities of
Boulder and Westminster ranked among the top five in the 75,000 to 124,999 population category in the
“2014 Digital Cities Survey.” Both surveys, compiled by e.Republic’s Center for Digital Government and Digital
Communities, recognized counties and cities that provided exemplary digital service to their residents and
highlighted the areas’ best practices.
Wireless and wired networks upgrades are enhancing speed, reliability, coverage, and performance for
residents and businesses in the nine-county region. Since 2011, AT&T has invested nearly $550 million in
wireless and wired networks across the state. Advancing its Project Velocity IP (VIP), an investment plan to
expand and enhance its wireless and wired IP broadband networks, AT&T made 292 network upgrades in
Colorado in 2013, including new cell sites, additional wireless network capacity, and new broadband network
connections. Verizon Wireless launched faster mobile broadband technology in five Colorado cities and other
nationwide markets. Denver, Colorado Springs, Fort Collins, Greeley, and Pueblo will have access to Verizon’s
XLTE network, which will deliver faster peak data speeds and a minimum of double the bandwidth to
fourth-generation mobile broadband, long-term evolution network, or 4G LTE customers in high-traffic areas.
1
The nine-county Metro Denver and Northern Colorado region consists of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson,
Larimer, and Weld Counties.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 1
BROADCASTING AND TELECOMMUNICATIONS:
Metro Denver and Northern Colorado Industry Cluster Profile
Sprint launched its enhanced LTE network in Denver, with improved in-building signal, expanded coverage,
and intelligence offered by the enhanced network capability. The LTE network offers customers wireless
speeds of 6 to 15 megabits per second (Mbps), with peaks of 50 to 60 Mbps.
Broadcasting and Telecommunications Economic Profile
The broadcasting and telecommunications industry cluster consists of 16, six-digit North American Industry
Classification System (NAICS) codes including radio and television communications equipment, telephone
communications, and cable television services.
The nine-county region ranked fifth out of the 50 largest metro areas for broadcasting and
telecommunications employment concentration in 2014. With direct employment of about 42,810
broadcasting and telecommunications employees, the region ranked 10th in absolute employment. About 88
percent of Colorado’s broadcasting and telecommunications cluster employees work in the region.
Broadcasting and Telecommunications Employment and Company Profile, 2014
Nine-County Region
United States
42,810
1,223,200
Number of direct companies, 2014
2,490
142,160
One-year direct employment growth, 2013-2014
0.9%
1.1%
Five-year direct employment growth, 2009-2014
0.0%
-8.9%
Avg. annual direct employment growth, 2009-2014
0.0%
-1.9%
Direct employment concentration
2.3%
0.8%
Direct employment, 2014
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014; Development Research Partners.
Broadcasting and Telecommunications Employment
The nine-county region’s broadcasting
and telecommunications employment
(42,810 workers) rose 0.9 percent in
2014, compared with the previous
year’s level, adding nearly 370 new jobs
over the same period. National
employment levels increased 1.1
percent over-the-year. About 3.5
percent of the nation’s broadcasting and
telecommunications employment is
located in the region.
Approximately 2,490 broadcasting and
telecommunications companies
operated in the nine-county region in
2014. About 78 percent of the region’s
broadcasting and telecommunications
companies employed fewer than 10
people, while 0.9 percent employed 250
or more.
Broadcasting and Telecommunications
Number of Employees Growth Rate
5%
0%
-5%
-10%
2009
2010
2011
2012
Nine-County Region
2013
2014
Avg Annual
Growth
United States
Source: Dun & Bradstreet, Inc., Marketplace database, July-Sept. 2008-2010; Market Analysis Profile, 2011-2014.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 2
BROADCASTING AND TELECOMMUNICATIONS:
Metro Denver and Northern Colorado Industry Cluster Profile
Broadcasting & Telecommunications Employment by County,
2014
Larimer
3.1%
Arapahoe
33%
Weld
0.8%
Adams
3.8%
Jefferson
4.8%
Boulder
5.8%
Broomfield
6.0%
Denver
29%
Douglas
13%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Broadcasting & Telecommunications Employment by
Industry Sector, 2014
Communications
equipment mfg.
Radio &
3.9%
television
broadcasting
stations
4.6%
Telephone
communication
services
49.3%
Information
retrieval services
5.5%
Other
communication
services
7.7%
Cable & other
pay television
services
28.9%
Sources: Market Analysis Profile, 2014; Development Research Partners.
Major Broadcasting and Telecommunications Companies
•
Alcatel-Lucent
www.alcatel-lucent.com
•
iHeartMedia, Inc. (formerly Clear Channel
Comm., Inc.)
•
AT&T Inc.
www.att.com
•
Integra Telecom, Inc.
www.integratelecom.com
•
Avaya Inc.
www.avaya.com
•
Jones International, Ltd.
www.jones.com
•
BI Incorporated
http://bi.com
•
Level 3 Communications, Inc.
www.level3.com
•
Birch Communications
www.birch.com
•
Liberty Media Corp.
www.libertymedia.com
•
BT Conferencing, Inc.
www.btconferencing.com
•
Sprint Corp.
www.sprint.com
•
CenturyLink, Inc.
www.centurylink.com
•
Starz
www.starz.com
•
Charter Communications Inc.
www.charter.com
•
T-Mobile
www.t-mobile.com
Metro Denver Economic Development Corporation | January 29, 2015 | Page 3
BROADCASTING AND TELECOMMUNICATIONS:
Metro Denver and Northern Colorado Industry Cluster Profile
Major Broadcasting and Telecommunications Companies Cont’d
•
Comcast Corp.
www.comcast.com
•
Verizon
www.verizon.com
•
DIRECTV, Inc.
www.directv.com
•
XO Communications, LLC
www.xo.com
•
DISH Network
www.dishnetwork.com
•
WildBlue Communications, Inc.
www.wildblue.com
•
EchoStar Corp.
www.echostar.com
•
Zayo Group
www.zayo.com
•
Google
www.google.com
2014 Industry Highlights
Expanded Broadband and Network Improvements
The nine-county region’s broadcasting and telecommunications companies offered expanded broadband and
increased network speeds in 2014.
•
•
•
•
•
CenturyLink, Inc. expanded its Internet television service in the region to Douglas County,
unincorporated Jefferson County, Denver, Centennial, and Castle Rock. CenturyLink, Inc.’s television
service Prism™ was first offered to residents in Highlands Ranch and is delivered through the
company’s fiber-optic network.
CenturyLink began offering Internet speeds of 1 gigabit per second to its Metro Denver customers.
The upgraded speed will allow users to stream high-definition video, download movies, songs, and
shows in seconds and is up to 100 times faster than the 10 Mbps or less that is the national average.
Comcast Corp. and Englewood-based Liberty Global PLC formed an agreement to offer the industry’s
first international WiFi roaming connectivity to their subscribers. The service will be offered beginning
in 2015 and will allow subscribers to access each other’s WiFi networks without consuming allotted
data on their wireless plans.
Comcast Corp. doubled its two most popular Internet speed plans in Colorado for no additional cost.
The Blast! Plan increased download speeds from up to 25 Mbps to up to 50 Mbps, Extreme 50
increased download speeds from up to 50 Mbps to up to 105 Mbps, and the Performance plan
increased speeds from 15 Mbps to up to 20 Mbps.
Douglas County-based DISH Network signed an agreement with The Walt Disney Company to provide
DISH customers with access to Disney’s sports, news, and entertainment content across Internet
devices. Under the agreement, DISH customers can access Disney’s authenticated live and
video-on-demand products.
Key Company Announcements
The nine-county region is a key location for broadcasting and telecommunication companies to grow and
expand. Notable company announcements in 2014 included:
•
•
•
•
Layer3 TV relocated its headquarters from Boston to downtown Denver. The company provides IP
video and technology and could generate 312 jobs over the next few years.
Google plans to build a four-acre campus in Boulder, which includes three, four-story buildings at 30th
and Pearl Streets. The expansion includes a 600-space underground parking garage, 300 spaces for
bicycles, and enough space for up to 1,500 employees. The company’s Boulder workforce of 340
employees are dispersed throughout the city and would be consolidated into the site in early 2017.
ViaWest opened their newest greenfield data center in a 200,000-plus-square-foot building in Metro
Denver. The data center is located south of Centennial Airport near E-470 and Peoria. The $208
million facility contains 140,000 square feet of raised floor dedicated to data servers and the company
plans to invest $316 million over the next seven years.
Charter Communications Inc. broke ground on a $25.5 million research and development facility at
the Compark Business Campus in unincorporated Douglas County. The 85,000-square-foot industrial
building will include 60,000 square feet of office space, conference rooms, and break areas, and the
Metro Denver Economic Development Corporation | January 29, 2015 | Page 4
BROADCASTING AND TELECOMMUNICATIONS:
Metro Denver and Northern Colorado Industry Cluster Profile
•
•
residual space will include a data center laboratory. The new facility will accommodate more than 200
technical staff and is slated for completion in 2015.
Avaya Inc. relocated its laboratory operations from Westminster to Thornton and will move its
Westminster-based services business to Highlands Ranch. The new 116,000 square feet of space in
Thornton includes infrastructure upgrades, additional parking, and landscaping upgrades.
Boulder-based Zayo Group LLC opened a 24,000-square-foot facility in downtown Denver. The new
office near Denver’s Union Station will house about 125 employees.
Merger and Acquisition Activity
Companies in the nine-county region announced several mergers and acquisitions in 2014.
•
•
•
•
Douglas County-based tw telecom was purchased by Broomfield-based Level 3 Communications, Inc.
The $5.3 billion deal will add business and local fiber-optic rings in 76 U.S. metropolitan areas and
improve data carrying capacity. The deal increased Level 3’s international fiber-optic network to
212,000 miles, which carries Internet traffic, video, and business data for client companies. The
combined companies have nearly 4,000 Colorado employees and 13,600 worldwide.
Imagine Communications, a media technology business that was formerly part of Colorado-based
Harris Broadcast, acquired OpenTV’s Advanced Advertising business unit. The company will add more
than 75 developers, research and development staff, and customer service representatives to
Imagine’s Denver and California facilities.
Greenwood Village-based ViaWest Inc. was sold to Canadian cable multiple-system operator Shaw
Communications Inc. The $1.2 billion deal will expand Shaw’s data service offerings and cloud
capabilities business, while boosting ViaWest’s company operations in North America. ViaWest’s
headquarters will remain in Greenwood Village.
Zayo Group acquired three companies including Paris-based Neo Telecoms, London-based Geo
Networks Ltd., and Dallas, Texas-based CoreXchange, Inc. The acquisitions will add more than 2,100
miles to its existing fiber-optic network in Europe and will bring Zayo’s total data center count to 27
locations across the U.S.
Cross-Cluster Convergence
The nine-county region’s unique convergence of broadcasting and telecommunications and other high-tech
industries, such as aviation and aerospace, provides further opportunities for innovation, collaboration, and
growth.
•
•
Broomfield-based Gogo Biz launched its in-flight WiFi and voice services for business jets flying over
Canada. The offering is the largest territorial expansion the company has undergone since launching
its service in 2009. The company’s Gogo service is the dominant domestic in-flight WiFi for 2,300
domestic planes operated by Delta Airlines, American Airlines, US Airways, United Airlines, Frontier
Airlines, and AirTran Airways.
Northrop Grumman Corp. selected Broomfield-based Level 3 Communications Inc. to deliver images
and communications via its network to a national simulation training system for the U.S. Air Force.
Under the agreement, Level 3 will deliver real-time communications and high-resolution images for
the simulations.
Research and Educational Announcements
The nine-county region’s leading research institutions and educational facilities make significant contributions
to the region’s broadcasting and telecommunications industry.
•
•
The University of Colorado approved the new College of Media, Communication, and Information. The
majors offered include media design, advertising, communication, information, and science and media
studies. College enrollment will begin in the fall of 2015.
Colorado State University partnered with Indiana University, the University of Michigan, the University
of Florida, and the University of Wisconsin‐Madison to improve the way digital educational content is
shared across universities and delivered to students. The technology consortium launched a new
online platform, Unizin, as a one‐stop shop for digital education that allows faculty to design effective
learning experiences and improve how course content is created and delivered to students.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 5
BROADCASTING AND TELECOMMUNICATIONS:
Metro Denver and Northern Colorado Industry Cluster Profile
Broadcasting and Telecommunications Workforce Profile
Many companies choose locations because
of the available workforce. With nearly half
of the nine-county region’s 3.6 million
residents under the age of 35, employers
can draw from a large, young, highly
educated, and productive workforce. Of the
region’s adult population, 41.2 percent are
college graduates and 90.5 percent have
graduated from high school. The state has
the nation’s second-most highly educated
workforce as measured by the percentage
of residents with a bachelor’s degree or
higher.
The attractiveness of the region draws new
residents through migration. The region’s
population is expected to grow 53.3 percent
from 2010 to 2040, driving a 36.3 percent
increase in the region’s labor force over the
same period. It is important to note the
changing composition of the workforce
supply as the baby boomers begin to retire,
which will pose implications for businesses
whose employee pool includes significant
numbers of these workers.
Educational Attainment of Metro Denver and Northern
Colorado's Population Age 25 and Older
Less than 9th
Grade
3.9%
Graduate or
Professional
Degree
15.3%
9th to 12th Grade,
No Diploma
5.6%
High School
Graduate
(includes
equivalency)
20.0%
Bachelor’s
Degree
25.9%
Some College,
No Degree
21.7%
Associate Degree
7.7%
Source: U.S. Census Bureau, 2013 American Community Survey.
3,000,000
Metro Denver and Northern Colorado's Labor Force
Projections by Age
2,500,000
2,000,000
The nine-county region’s broadcasting and
telecommunications industry employs
42,810 people and includes a large pool of
talented, well-educated, and highly skilled
workers. Compared with the age
distribution across all industries, the
broadcasting and telecommunications
cluster has a larger share of employees that
are between the ages of 25 and 54 years
old.
1,500,000
1,000,000
500,000
0
2010
2020
16-24
25-34
2030
35-44
45-54
2040
55-64
65+
Source: Colorado Division of Local Government, State Demography Office.
The broadcasting and telecommunications
workforce supply consists of four main
components: those currently working in the
industry; those doing a similar type of job
in some other industry; the unemployed;
and those currently in the education
pipeline. The Metro Denver and Northern
Colorado Occupation & Salary Profile below
includes the 10 largest broadcasting and
telecommunications occupations in the
region. For these 10 largest occupations,
the chart details the total number of
workers employed in that occupation across
all industries, the number of available
applicants that would like to be working in
that occupation, the number of recent
graduates that are qualified for that
occupation, and the median and sample
percentile annual salaries.
Metro Denver and Northern Colorado's Distribution of
Employment by Age
35%
30%
25%
20%
15%
10%
5%
0%
16-24
25-34
35-44
45-54
Broadcasting & Telecommunications
55-64
65+
All Industries
Source: Provided by Arapahoe/Douglas Works! QCEW Employees, Non-QCEW Employees, Self Employed, &
Extended Proprietors - EMSI 2014.3 Class of Worker.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 6
BROADCASTING AND TELECOMMUNICATIONS:
Metro Denver and Northern Colorado Industry Cluster Profile
Wages
The 2013 average annual salary for broadcasting and telecommunications employees in the nine-county
region was $97,700, compared with $80,110 nationwide. Total payroll for the broadcasting and
telecommunications cluster in the region exceeded $4.1 billion in 2013.
Metro Denver and Northern Colorado Broadcasting and Telecommunications Occupation & Salary
Profile, 2014
10 Largest Broadcasting &
Telecommunications
Occupations
in Metro Denver and Northern
Colorado
1. Customer service
representatives
2. Telecommunications
equipment installers &
repairers, except line
installers
3. Sales representatives,
services, all other
4. Business operations
specialists, all other
5. Electronics engineers,
except computer
6. Network & computer
systems administrators
7. Software developers,
applications
8. Software developers,
systems software
9. Computer network
architects
10. Secretaries &
administrative assistants,
except legal, medical, &
executive
Total
Working Number of
Across All Available
Industries Applicants
(2014)
(2014)
Number of
Graduates
(2013)
Median
Salary
10th
Percentile
Salary
25th
Percentile
Salary
75th
90th
Percentile Percentile
Salary
Salary
36,610
6,494
0
$31,866
$22,194
$26,562
$40,290
$49,754
3,731
201
9
$63,523
$39,166
$53,082
$69,742
$73,653
17,631
1,286
77
$50,877
$24,960
$34,674
$75,546 $110,864
32,981
789
77
$69,930
$36,067
$50,024
$92,622 $120,078
4,292
86
356
$92,955
$59,634
$72,758
$119,246 $144,352
8,567
523
696
$78,312
$50,835
$62,816
$95,389 $113,214
19,382
340
585
$91,021
$56,056
$71,718
$111,696 $134,472
10,055
105
630
$97,136
$64,210
$78,915
$118,685 $140,878
3,091
95
1,552
$96,720
$49,442
$72,821
$115,440 $138,674
49,635
654
71
$36,026
$23,587
$29,037
$43,992
$51,979
Notes: The number of available applicants is a point-in-time measurement of the number of people who have registered in Colorado’s
workforce development system’s statewide database, Connecting Colorado, as being able and available to work in a particular occupation.
Results should be interpreted with caution since registration in Connecting Colorado is self-reported. In addition, the skills rubric may assign
up to four occupation codes for each registrant. Therefore, the number of available applicants could be inflated. Source: Provided by
Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2014.3 Class of Worker.
Education & Training
Colorado’s higher education system provides an excellent support system for businesses in the region. There
are 28 public higher education institutions in Colorado, of which seven four‐year and six two‐year public
institutions offering comprehensive curricula are located in the nine‐county region. In addition, there are more
than 100 private and religious accredited institutions and nearly 340 private occupational and technical
schools offering courses in dozens of program areas throughout the state. Although not exhaustive, a list of
the major, accredited educational institutions with the greatest number of graduates for each of the 10 largest
broadcasting and telecommunications occupations in the nine-county region are included below. A directory of
all higher education institutions with corresponding websites may be accessed
via http://highered.colorado.gov.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 7
BROADCASTING AND TELECOMMUNICATIONS:
Metro Denver and Northern Colorado Industry Cluster Profile
•
Colorado State University
www.colostate.edu
•
Metropolitan State University of Denver
www.msudenver.edu
•
University of Denver
www.du.edu
•
Colorado State University Global Campus
www.colostate.edu
•
Regis University
www.regis.edu
•
University of
Northern Colorado
www.unco.edu
•
DeVry University – Colorado
www.devry.edu
•
University of Colorado Boulder
www.colorado.edu
•
Jones International University
www.jiu.edu
•
University of Colorado Denver
www.ucdenver.edu
Key Reasons for Broadcasting and Telecommunications Companies
to Locate in the Nine-County Region
The region is a top 10 broadcasting and telecommunications location offering:
1. A central location and easy global access
•
Metro Denver's unique geographic location in the Mountain time zone makes it the largest region in
the U.S. to offer one-bounce satellite uplinks. This capability provides companies with real-time
connections to six of seven continents in one business day. (Metro Denver Economic Development
Corporation)
•
Denver International Airport was the fifth-busiest airport in the nation and 15th-busiest worldwide in
terms of passenger traffic in 2013. (U.S. Bureau of Transportation Statistics, 2014; Airports Council
International 2014; and Denver International Airport, 2014)
•
Located on the 105th meridian, the nine-county region’s central location at the exact midpoint
between Tokyo and Frankfurt positions the region favorably to serve growing world markets. The
region is an excellent location for doing business with the entire nation and is within four hours flying
time of every North American city with a population of 1 million or more. (Metro Denver Economic
Development Corporation)
•
Denver ranked among the top-five safest cities for natural disasters in 2014.
(HomeownersInsurance.com, 2014)
2. A large concentration of high-quality technology workers and entrepreneurial talent
•
Of Colorado’s adult population, nearly 38 percent has completed a bachelor’s or higher-level degree,
making Colorado the second-most highly educated state in the nation behind Massachusetts. (U.S.
Census Bureau, 2013 American Community Survey)
•
Colorado had the third-highest tech-worker concentration in 2012, with 8.7 percent of the state’s
private-sector workforce employed in technology firms. Colorado also had the nation’s 11th-largest
employment base in the Internet and telecommunications services industry and ranked sixth for
average high-tech wage, 11th for absolute number of high-tech businesses, and 15th for absolute
employment in the high-tech industry. Colorado tech workers earn 98 percent more than the average
private sector worker. (TechAmerica Foundation, Cyberstates 2013: The Definitive State-by-State
Analysis of the U.S. High-Technology Industry, 2013)
•
Colorado ranked as the fifth-most entrepreneurial state in the 2013 Kauffman Index of Entrepreneurial
Activity, with 380 new business owners per 100,000 adults. (Ewing Marion Kauffman Foundation,
2014)
•
Denver ranked as the second-best city to launch a startup business out of the 50 most populated
cities. (Forbes, 2014)
•
Technology workers in the Denver-Boulder area had the third-highest salaries in the U.S. in 2014.
Adjusted for cost of living, the average annual salary for the Denver-Boulder area’s technology
workforce was $98,000. (TriNet, 2014)
•
Denver ranked as the ninth-best city for college graduates and received accolades for its highly
educated population, moderate cost of living, and higher-than-average wages. (NerdWallet, 2014)
•
Denver ranked as the seventh-best city for millennials (ages 25-34) out of 25 major cities with a
population over 1 million in 2014. (Niche.com, 2014)
Metro Denver Economic Development Corporation | January 29, 2015 | Page 8
BROADCASTING AND TELECOMMUNICATIONS:
Metro Denver and Northern Colorado Industry Cluster Profile
•
The Denver-Aurora-Broomfield MSA was named to the top 10 list of “Best Big Cities for Jobs 2014.”
(Forbes, 2014)
3. Low to moderate costs of doing business
•
Forbes ranked Colorado fifth on its 2014 “Best States for Business and Careers” list. The state
received its highest rankings for labor supply (first overall), growth prospects (fourth overall),
economic climate (eighth overall), and quality of life (ninth overall). (Forbes, 2014)
•
Metro Denver ranked fourth among Forbes 2014 “Best Places for Business and Careers” list. Four
other Colorado metropolitan areas were included on the list. The Fort Collins metro area ranked fifth
overall, Greeley ranked 20th, Boulder ranked 23rd, and Colorado Springs ranked 29th. (Forbes, 2014)
•
Metro Denver office rental rates averaged $28.83 per square foot in the fourth quarter of 2014,
making the region’s office market highly competitive with other major markets in the U.S. (CoStar
Realty Information, The CoStar Office Report, Q4 2014)
4. A pro-business environment and competitive tax structure
•
Colorado's simplified corporate income tax structure based on single-factor apportionment allows
companies to pay taxes based solely on their sales in the state. Along with few regulatory burdens,
Colorado's corporate income tax rate of 4.63 percent is one of the lowest and most competitive tax
structures in the nation. (State of Colorado; The Tax Foundation)
•
Colorado has the nation’s ninth-best tax climate for entrepreneurship and small business. (Small
Business & Entrepreneurship Council, 2014)
•
Colorado ranked second in innovation and entrepreneurship and was among the top 10 states for
infrastructure, business climate, and talent pipeline. (National Chamber Foundation, 2014)
•
Colorado ranked as the No. 8 small-business-friendly state in the nation. Fort Collins (24th) and
Denver (28th) ranked among 84 cities in the country. (Thumbtack.com, 2014; Ewing Marion Kauffman
Foundation, 2014)
5. An overall better quality of life
•
Castle Rock ranked fourth in MONEY Magazine’s 2014 list of the “Best Places to Live.” Centennial
(13th) and Boulder (23rd) were also named to the list’s top 50. (MONEY Magazine, 2014)
•
Metro Denver ranked as the fourth-fittest metro area in the nation in 2014. Denver’s high percentage
of residents participating in physical activity, and low obesity and cardiovascular disease rates
contributed to its high rank. (American College of Sports Medicine, 2014)
•
Colorado has the fourth-highest percentage of state land area devoted to the National Forest System.
The state offers access to more than 50 national parks and wilderness areas, 42 state parks, and the
greatest number of 14,000-foot peaks in the nation that support a healthy, active lifestyle. (U.S.
Forest Service, 2014; Colorado State Parks, 2014)
•
Boulder ranked second on the 2014 list of the “Top 100 Best Places to Live.” Aurora (50th) and
Lakewood (88th) were also named to the list. (Livability.com, 2014)
•
FasTracks, a comprehensive project to build out Metro Denver’s entire mass transit system by 2019, is
the largest simultaneous transit buildout in U.S. history. The expansion will make Metro Denver one of
the top five regions in the country in terms of miles of fixed rail.
Metro Denver Economic Development Corporation | January 29, 2015 | Page 9
BROADCASTING AND TELECOMMUNICATIONS:
Metro Denver and Northern Colorado Industry Cluster Profile
Broadcasting and Telecommunications Industry Cluster Definition
NAICS Code*
334210
334220
(P)
NAICS Description
Telephone apparatus mfg.
Radio & television broadcasting & wireless
communications equipment mfg.
Other communications equipment mfg.
Fiber optic cable mfg.
SIC Code
3661
3663
Other communication & energy wire mfg.
3357
515111
515112
515120
515210
Radio networks
Radio stations
Television broadcasting
Cable networks & other subscription prog.
4832
4832
4833
4841
517110
Wired telecommunications carriers
4813
517110
517110
Wired telecommunications carriers
Wired telecommunications carriers
4822
4841
517110
517210
Wired telecommunications carriers
Wireless telecommunications carriers (except
satellite)
Wireless telecommunications carriers (except
satellite)
Wireless telecommunications carriers (except
satellite)
Satellite telecommunications
Telecommunications resellers
Telecommunications resellers
7375
4812
SIC Description
Telephone & telegraph apparatus
Radio & tv communications
equipment
Communications equipment, NEC
Drawing & insulating of nonferrous
wire
Drawing & insulating of nonferrous
wire
Radio broadcasting stations
Radio broadcasting stations
Television broadcasting stations
Cable & other pay television
services
Telephone communication except
radio
Telegraph & other communications
Cable & other pay television
services
Information retrieval services
Radiotelephone communication
4899
Communication services, NEC
7375
Information retrieval services
4899
4812
4813
All other telecommunications
All other telecommunications
Internet publishing & broadcasting & web search
portals
All other business support services
4899
7375
8999-0800
Communication services, NEC
Radiotelephone communication
Telephone communication except
radio
Communication services, NEC
Information retrieval services
Communication services
7389-1004
Teleconferencing services
334290
335921
335929
(P)
517210
517210
517410
517911
517911
517919
517919
519130
(P)
(P)
(P)
561499
(P)
3669
3357
*(P) indicates that only part of the NAICS industry category is represented in the industry cluster definition.
Note: NEC indicates “not elsewhere classified.”
Metro Denver Economic Development Corporation | January 29, 2015 | Page 10
BROADCASTING AND TELECOMMUNICATIONS:
Metro Denver and Northern Colorado Industry Cluster Profile
Broadcasting and Telecommunications Industry Cluster Relationships
Technologies
Wi-Fi – Wireless Fidelity
Fiber Optic Networks
VoIP – Voice over Internet Protocol
Nanotechnology
Internet
Photonics
Client Industries
Support Industries
Aerospace
Computer Storage
Fiber Optics
Geospatial
Photonics
Software
Broadcasting and
Telecommunications
Infrastructure
Aerospace
Aviation
Bioscience
Energy
Financial Services
Healthcare
Software
Consumers
Businesses
CO Technology Partners
One-Bounce Satellite Location
High-Speed Digital Network
CO Telecom Association
CO Photonics Industry Association
CU-Telecom Systems Lab
CTA-Colorado Technology Association
DU Center for Technology Innovation
For additional information, contact us:
1445 Market Street
Denver, CO 80202-1790
303.620.8092
email: info@metrodenver.org
www.metrodenver.org
Prepared by Development Research Partners, Inc., www.DevelopmentResearch.net
Metro Denver Economic Development Corporation | January 29, 2015 | Page 11
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